Cochin Shipyard Limited’s (NSE:COCHINSHIP) 26% Share Price Surge Not Quite Adding Up
Cochin Shipyard Limited (NSE:COCHINSHIP) shares have continued their recent momentum with a 26% gain in the last month alone. Looking back a bit further, it’s encouraging to see the stock is up 35% in the last year.
After such a large jump in price, Cochin Shipyard’s price-to-earnings (or “P/E”) ratio of 59.7x 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 26x and even P/E’s below 15x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
