Exactly, this is what I meant. Few examples
- MCX with P/E aof 90x. Currently earnings are depressed with high software charges which would normalize starting Q3 FY24
- Fairchem organics, where P/E appears high at 64x, as the earnings took beatings in recent quarters
Broadly, cyclical cos may look optically expensive when earnings are depressed with very low profitability. Examples being commodity businesses like metals, etc.
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