Citigroup continues to be bullish on the Indian market and has set a BSE SENSEX Target of 23,950 to 25,000 for 2008. Average earnings of SENSEX companies has grown by 33% in the last and current financial year. For the FY09 the earnings are likely to grow a modest 19%, the lowest in the PAST 5 years.
At the above figures, if SENSEX were to Quote at 25,000, the P/E would tend towards 23.1. In our honest opinion, we feel it is highly absurd valuation for mere 19% growth in FY09. We once again stick to fundamentals and VALUE based stock picking.