Nifty India Tourism P/E at 85, up from 49 in June

The number

Nifty India Tourism closed at 7,478.75 on Friday, 9 October 2026, at a price-to-earnings ratio of 85.17. Its price-to-book ratio was 8.80; its dividend yield as of 8 October was 0.37%, since NSE's 9 October file shows yields that jumped across most indices overnight.

On 1 June the same index traded at a P/E of 48.99, close to its lowest on record. Ten weeks later, on 7 August, it set its highest, 97.74. The price did not do that. These are NSE's end-of-day figures, charted daily on the Nifty India Tourism valuation page.

A young index against its own record

The daily series runs from 19 June 2024: 573 sessions. The page also holds two isolated older readings, from 7 July 2016 (no P/E) and 12 April 2023 (a P/E of 194.71, which is why the page shows a 2023 high). The table uses the daily run.

• P/E: 522 of 573 sessions closed lower, about the 91st percentile. The low, 48.88, was on 30 March 2026; the high on 7 August 2026.
• P/B: only 37 sessions closed lower, about the 6th percentile. The high, 23.86, was on 5 September 2024.
• Dividend yield: only 5 sessions paid more than 0.37%.

So the two main yardsticks point opposite ways. On earnings the index is near the dear end of its history; on book value, near the cheap end.

The earnings fell in two steps

Dividing the close by the P/E gives the earnings behind one unit of the index.

Two single sessions did most of the work: earnings fell 32.3% on 2 June and 18.6% on 27 July. Both came during or just after a quarterly results season. Since 1 June they are down 40.3% while the price is up 3.8%, so the P/E rose 73.9%.

Over the full year the price fell 15.8%, the P/E rose 34.2% and the earnings behind the index fell 37.3%.

Steps that size in a single session usually come from one large company's quarterly result, or a change in the basket at a rebalancing. The published ratios do not say which company moved, and with three companies near 20% each, any one of them can.

Why book value tells a different story

The P/B has fallen from 10.49 to 8.80 over the year, and from 20.88 at the start of the daily series. Part of that is price. More of it is a bigger book: the book value behind one unit of the index has more than doubled since June 2024, from about 408 index points to 850, with a 41% jump between July and October 2025 alone. With yearly earnings of about 135 index points on a book of about 600, retained profits could add at most a fifth or so a year; a 41% jump in three months points to a change in the basket instead. A low P/B here says the basket's balance sheet is larger, not that the same companies got cheaper.

Against the Nifty 50 and its neighbours

Price changes exclude dividends.

Tourism's P/E is 4.42 times the Nifty 50's. Its median multiple over the daily history is 3.02, and only 37 of 573 sessions showed a higher one. Against the broader consumption index it costs 2.3 times as much per rupee of earnings.

On price, the index has tracked the market this year, down 13.1% against the Nifty 50's 13.8%. It is 20.7% below its record close of 9,434.25 on 16 July 2025, and 14.7% above its 2026 low of 6,517.65 on 30 March. The Nifty 50 is up 0.8% since that date.

What is in the index

The Tata Nifty India Tourism Index Fund and the Kotak Nifty India Tourism Index Fund held the same 11 companies on 30 September 2026. In the Tata fund's weights:

EIH, TBO Tek, Devyani International, Lemon Tree Hotels and BLS International make up the rest. IRCTC also sits in the railway index: our Railways PSU P/E post covers that one.

Over the year the Tata fund returned −16.12% and the Kotak fund −16.00%, close to the index's price fall. Both are listed among index funds; a thematic fund with the same idea would sit under sectoral and thematic funds.

What this does not tell you

The P/E is moving on earnings, not on price. A ratio that went from 49 to 98 in ten weeks with the price up 13% is reporting what happened to profits. If those profits recover, the P/E can fall just as fast without the price moving.

The history is a little over two years. A median of 66.92 describes a short and unusual stretch, not a normal level.

Three companies set the ratios. An airline, a hotel chain and an airport operator make up nearly 60% of the index, and their earnings swing with fuel, fares and occupancy.

None of this is a recommendation. For the arithmetic, read how to read an index P/E ratio and the P/E ratio entry; for the risks of a one-theme fund, the guide to sectoral and thematic funds. Both tourism index funds opened in 2024 and are below their first NAV; our look at thematic funds launched in 2024, which leaves index funds out, found 14 of 53 active ones in the same position. NSE's index factsheets are at niftyindices.com.