What V.I.P. Industries Limited’s (NSE:VIPIND) 27% Share Price Gain Is Not Telling You
V.I.P. Industries Limited (NSE:VIPIND) shareholders are no doubt pleased to see that the share price has bounced 27% in the last month, although it is still struggling to make up recently lost ground. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 37% over that time.
Following the firm bounce in price, given close to half the companies operating in India’s Luxury industry have price-to-sales ratios (or “P/S”) below 0.9x, you may consider V.I.P. Industries as a stock to potentially avoid with its 2.1x P/S ratio. However, the P/S might be high for a reason and it requires further investigation to determine if it’s justified.
