Sarda Energy & Minerals Limited’s (NSE:SARDAEN) 34% Share Price Surge Not Quite Adding Up
Despite an already strong run, Sarda Energy & Minerals Limited (NSE:SARDAEN) shares have been powering on, with a gain of 34% in the last thirty days. The annual gain comes to 122% following the latest surge, making investors sit up and take notice.
In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about Sarda Energy & Minerals’ P/E ratio of 30.7x, since the median price-to-earnings (or “P/E”) ratio in India is also close to 34x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
For example, consider that Sarda Energy & Minerals’ financial performance has been poor…
