Divi’s Laboratories Limited’s (NSE:DIVISLAB) Share Price Could Signal Some Risk
With a price-to-earnings (or “P/E”) ratio of 69.2x Divi’s Laboratories Limited (NSE:DIVISLAB) may be sending very bearish signals at the moment, given that almost half of all companies in India have P/E ratios under 27x and even P/E’s lower than 15x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
With earnings growth that’s superior to most other companies of late, Divi’s Laboratories has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. You’d really…
