Chandan Healthcare Limited’s (NSE:CHANDAN) 27% Share Price Surge Not Quite Adding Up
Despite an already strong run, Chandan Healthcare Limited (NSE:CHANDAN) shares have been powering on, with a gain of 27% in the last thirty days. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Since its price has surged higher, Chandan Healthcare’s price-to-earnings (or “P/E”) ratio of 31.8x might make it look like a sell right now compared to the market in India, where around half of the companies have P/E ratios below 27x and even P/E’s below 15x 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 as high as it is.
