Its not like that. Company is entering the US retail market…This is going to increase its topline..Business of the company is good…I would like to say here…ROE ratio will not decrease rather it will increase since now Kitex will eat away the margins of the entire value chain…It has growth in its pipeline…
One more thing which i believe is – do not consider P/E in small and mid cap stocks…if they have real growth potential…just because if growth is there…the EPS and ROE and everything else is just going to grow 2 or 3 folds in years to come. When you look at the the PE (leading PE) – 2 or 3 years leading – you see PE to be real small..We should invest in Kitex at this moment – but the red flags I have above alarm me from doing that.
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