Praxis Home Retail Limited’s (NSE:PRAXIS) 28% Price Boost Is Out Of Tune With Revenues
Praxis Home Retail Limited (NSE:PRAXIS) shares have had a really impressive month, gaining 28% after a shaky period beforehand. But the gains over the last month weren’t enough to make shareholders whole, as the share price is still down 9.6% in the last twelve months.
Although its price has surged higher, it’s still not a stretch to say that Praxis Home Retail’s price-to-sales (or “P/S”) ratio of 1.7x right now seems quite “middle-of-the-road” compared to the Specialty Retail industry in India, where the median P/S ratio is around 1.3x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
