Privi Speciality Chemicals Limited’s (NSE:PRIVISCL) 26% Share Price Surge Not Quite Adding Up
Despite an already strong run, Privi Speciality Chemicals Limited (NSE:PRIVISCL) shares have been powering on, with a gain of 26% in the last thirty days. The last 30 days bring the annual gain to a very sharp 100%.
After such a large jump in price, Privi Speciality Chemicals may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 48.6x, since almost half of all companies in India have P/E ratios under 27x and even P/E’s lower than 15x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
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