Tatva Chintan Pharma Chem Limited’s (NSE:TATVA) P/S Is Still On The Mark Following 25% Share Price Bounce
Tatva Chintan Pharma Chem Limited (NSE:TATVA) shares have continued their recent momentum with a 25% gain in the last month alone. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 16% in the last twelve months.
Since its price has surged higher, when almost half of the companies in India’s Chemicals industry have price-to-sales ratios (or “P/S”) below 1.5x, you may consider Tatva Chintan Pharma Chem as a stock not worth researching with its 5.7x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
