WEBULL

Mittal Life Style Limited's (NSE:MITTAL) Shares Not Telling The Full Story

Simply Wall St · 4d ago

Mittal Life Style Limited's (NSE:MITTAL) price-to-earnings (or "P/E") ratio of 21.2x might make it look like a buy right now compared to the market in India, where around half of the companies have P/E ratios above 26x and even P/E's above 50x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.

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As an illustration, earnings have deteriorated at Mittal Life Style over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.

Check out our latest analysis for Mittal Life Style

pe-multiple-vs-industry
NSEI:MITTAL Price to Earnings Ratio vs Industry January 8th 2026
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Mittal Life Style's earnings, revenue and cash flow.

How Is Mittal Life Style's Growth Trending?

The only time you'd be truly comfortable seeing a P/E as low as Mittal Life Style's is when the company's growth is on track to lag the market.

Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 43%. However, a few very strong years before that means that it was still able to grow EPS by an impressive 731% in total over the last three years. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.

This is in contrast to the rest of the market, which is expected to grow by 25% over the next year, materially lower than the company's recent medium-term annualised growth rates.

With this information, we find it odd that Mittal Life Style is trading at a P/E lower than the market. It looks like most investors are not convinced the company can maintain its recent growth rates.

The Final Word

It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Our examination of Mittal Life Style revealed its three-year earnings trends aren't contributing to its P/E anywhere near as much as we would have predicted, given they look better than current market expectations. When we see strong earnings with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. At least price risks look to be very low if recent medium-term earnings trends continue, but investors seem to think future earnings could see a lot of volatility.

It is also worth noting that we have found 4 warning signs for Mittal Life Style (3 shouldn't be ignored!) that you need to take into consideration.

You might be able to find a better investment than Mittal Life Style. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).