What The Hi-Tech Gears Limited’s (NSE:HITECHGEAR) 27% Share Price Gain Is Not Telling You
The The Hi-Tech Gears Limited (NSE:HITECHGEAR) share price has done very well over the last month, posting an excellent gain of 27%. Longer-term shareholders would be thankful for the recovery in the share price since it’s now virtually flat for the year after the recent bounce.
After such a large jump in price, given close to half the companies in India have price-to-earnings ratios (or “P/E’s”) below 27x, you may consider Hi-Tech Gears as a stock to avoid entirely with its 49.8x 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.
