Your info is correct.
Our sentiments can be shaken in fast moving stocks due to fear of loss of unbooked profits.
However, I consider this stock as low float stock
There are only 312 public shareholders (as per Zerodha Kite) out of which we may assume some are relatives and friends of promoters.
In such low float stocks P/E can go very high.
Some egs PNGS Gargi, Insolation, Exhicon (These stocks now may have high float but during post listing the float was cornered)
Even for main board stocks also low float stocks can get very high P/E as no sellers might be there. (Avenue Supermart post IPO & Varun beverages currently)
According to me our focus should be more on management integrity, results and accounting practices. Untill these are taken care of (with good results) I dont think stock will correct much. time correction cant be ruled out after such a move.
Disc : Invested & may be biased
Subscribe To Our Free Newsletter |