sinha124Santosh SinhaSantosh Sinha1h
Look at this FHCO listed at Nasad has obly 500 cr m cap and PE is only 10
A stock PE have various phases according to the business cycle ..when the business is expected to grow at a very healthier rate and with sales the profit margins are expected to expand then the stock is given a high PE ratio.. which you can see in the case of eicher motors or page industries .
FCHO is not expected to grow the sales and profits in a way cupid is expected to grow.
so you cant compare two different businesses in different geographies at different business cycles on the basis on PE only .
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