There are several truisms related to equity market that are universal in nature. One of them is “what goes up must come down and vice-versa”, all other things being equal. A variant of that is “what goes up harder must come down harder”, again all other things being equal.
In other words, whenever stock prices go out of sync with fundamentals and valuations, a correction (upward or downward) always happens.
Coming to Waaree Renewable. In one year earnings are only 3x while stock price is 13x. With all due respect company is not a unicorn and nothing they are doing is special or unique. So it beats me as to why a renewable business should get a P/E of 120 (that too after 40% correction).
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