What Rico Auto Industries Limited’s (NSE:RICOAUTO) 31% Share Price Gain Is Not Telling You
Despite an already strong run, Rico Auto Industries Limited (NSE:RICOAUTO) shares have been powering on, with a gain of 31% in the last thirty days. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 19% over that time.
Following the firm bounce in price, given close to half the companies in India have price-to-earnings ratios (or “P/E’s”) below 27x, you may consider Rico Auto Industries as a stock to avoid entirely with its 41.5x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
