Anand Rathi Wealth Limited’s (NSE:ANANDRATHI) Share Price Matching Investor Opinion
Anand Rathi Wealth Limited’s (NSE:ANANDRATHI) price-to-earnings (or “P/E”) ratio of 71.2x might make it look like a strong sell right now compared to the market in India, where around half of the companies have P/E ratios below 32x and even P/E’s below 19x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
With earnings growth that’s exceedingly strong of late, Anand Rathi Wealth has been doing very well. The P/E is probably high because investors think this strong earnings growth will be enough to outperform the broader market in the near future. If not, then existing shareholders might be a little nervous about the viability of the share price.
