Earnings Working Against Nucleus Software Exports Limited’s (NSE:NUCLEUS) Share Price
When close to half the companies in India have price-to-earnings ratios (or “P/E’s”) above 33x, you may consider Nucleus Software Exports Limited (NSE:NUCLEUS) as an attractive investment with its 19x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.
Nucleus Software Exports hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. The P/E is probably low because investors think this poor earnings performance isn’t going to get any better. If you still like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.
