There’s Reason For Concern Over Dodla Dairy Limited’s (NSE:DODLA) Price
Dodla Dairy Limited’s (NSE:DODLA) price-to-earnings (or “P/E”) ratio of 33.9x might make it look like a sell right now compared to the market in India, where around half of the companies have P/E ratios below 27x and even P/E’s below 15x are quite common. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
With earnings growth that’s superior to most other companies of late, Dodla Dairy has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing shareholders…
