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    Market Participants Recognise Sigma Solve Limited's (NSE:SIGMA) Earnings Pushing Shares 25% Higher

    Simply Wall St·01/08/2026 00:31:50
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    Sigma Solve Limited (NSE:SIGMA) shareholders have had their patience rewarded with a 25% share price jump in the last month. Looking back a bit further, it's encouraging to see the stock is up 81% in the last year.

    Since its price has surged higher, Sigma Solve may be sending bearish signals at the moment with its price-to-earnings (or "P/E") ratio of 28.2x, since almost half of all companies in India have P/E ratios under 25x and even P/E's lower than 14x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's as high as it is.

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    Sigma Solve has been doing a good job lately as it's been growing earnings at a solid pace. It might be that many expect the respectable earnings performance to beat most other companies over the coming period, which has increased investors’ willingness to pay up for the stock. If not, then existing shareholders may be a little nervous about the viability of the share price.

    View our latest analysis for Sigma Solve

    pe-multiple-vs-industry
    NSEI:SIGMA Price to Earnings Ratio vs Industry January 8th 2026
    Although there are no analyst estimates available for Sigma Solve, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    Does Growth Match The High P/E?

    The only time you'd be truly comfortable seeing a P/E as high as Sigma Solve's is when the company's growth is on track to outshine the market.

    Taking a look back first, we see that the company grew earnings per share by an impressive 28% last year. The latest three year period has also seen an excellent 165% overall rise in EPS, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing earnings over that time.

    Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 25% shows it's noticeably more attractive on an annualised basis.

    With this information, we can see why Sigma Solve is trading at such a high P/E compared to the market. Presumably shareholders aren't keen to offload something they believe will continue to outmanoeuvre the bourse.

    The Bottom Line On Sigma Solve's P/E

    The large bounce in Sigma Solve's shares has lifted the company's P/E to a fairly high level. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

    We've established that Sigma Solve maintains its high P/E on the strength of its recent three-year growth being higher than the wider market forecast, as expected. Right now shareholders are comfortable with the P/E as they are quite confident earnings aren't under threat. If recent medium-term earnings trends continue, it's hard to see the share price falling strongly in the near future under these circumstances.

    You always need to take note of risks, for example - Sigma Solve has 1 warning sign we think you should be aware of.

    Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.