Market usually gives high PE to stocks that have
a. Growth
b. Visibility of earnings
c. Fewer uncertainties
Like Dmart, Pidilite etc.
Market perceives Muthoot to have headwinds in the form of competition from nbfc and banks. This is also showing in numbers. The management of mannapuram and Muthoot are denying. They are attributing degrowth to Covid.
Gold prices add to uncertainties.
All this could change in a year’s time. It has turned around in the past.
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