Earnings Working Against Responsive Industries Limited’s (NSE:RESPONIND) Share Price
With a price-to-earnings (or “P/E”) ratio of 23.7x Responsive Industries Limited (NSE:RESPONIND) may be sending bullish signals at the moment, given that almost half of all companies in India have P/E ratios greater than 28x and even P/E’s higher than 54x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.
Responsive Industries has been doing a good job lately as it’s been growing earnings at a solid pace. One possibility is that the P/E is low because investors think this respectable earnings growth might actually underperform the broader market…
