Definitely caution should be exercised for this reason and also for the valuations it’s trading at.
But sometimes valuation can sustain if the growth and profitability sustain. Also the management has guided about part of this quarter’s revenue to come in the next one or two quarters because their execution was delayed.
Hence there can be couple of lumpy quarters to follow.
When in doubt, better to play such businesses at expensive valuations with technicals.
| Subscribe To Our Free Newsletter |
