There’s No Escaping Century Extrusions Limited’s (NSE:CENTEXT) Muted Earnings Despite A 26% Share Price Rise
Century Extrusions Limited (NSE:CENTEXT) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. The last 30 days bring the annual gain to a very sharp 37%.
In spite of the firm bounce in price, given about half the companies in India have price-to-earnings ratios (or “P/E’s”) above 33x, you may still consider Century Extrusions as an attractive investment with its 26.6x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
The earnings growth achieved at Century Extrusions over the last year would be more than acceptable for most companies. It might be that many expect the…
