R & B Denims Limited’s (NSE:RNBDENIMS) 25% Share Price Surge Not Quite Adding Up
R & B Denims Limited (NSE:RNBDENIMS) shares have had a really impressive month, gaining 25% after a shaky period beforehand. Longer-term shareholders would be thankful for the recovery in the share price since it’s now virtually flat for the year after the recent bounce.
Following the firm bounce in price, given close to half the companies in India have price-to-earnings ratios (or “P/E’s”) below 28x, you may consider R & B Denims as a stock to avoid entirely with its 46.6x P/E ratio. 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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