In its base case, PL Capital values Nifty at a 2.5% discount to its 15-year average PE at 18.5x, using March 2027 EPS of Rs 1451.5 to arrive at a 12-month target of 26,889, which is higher than its earlier target of 25,521.
Under its bull case, Nifty is valued at a PE of 20x, resulting in a bull case target of 28,957, revised upwards from 27,590. In the bear case scenario, PL Capital expects Nifty to trade at a 10% discount to its long-term average, with a target of 24,821, slightly lower than the previous projection of 24,831.