Benign Growth For Aarvi Encon Limited (NSE:AARVI) Underpins Its Share Price
Aarvi Encon Limited’s (NSE:AARVI) price-to-earnings (or “P/E”) ratio of 16.3x might make it look like a buy right now compared to the market in India, where around half of the companies have P/E ratios above 28x and even P/E’s above 52x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
We’ve discovered 2 warning signs about Aarvi Encon. View them for free.
As an illustration, earnings have deteriorated at Aarvi Encon over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn’t eventuate then existing shareholders may be…
