What Vintage Coffee and Beverages Limited’s (NSE:VINCOFE) 26% Share Price Gain Is Not Telling You
Despite an already strong run, Vintage Coffee and Beverages Limited (NSE:VINCOFE) shares have been powering on, with a gain of 26% in the last thirty days. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Since its price has surged higher, Vintage Coffee and Beverages may be sending bearish signals at the moment with its price-to-earnings (or “P/E”) ratio of 38.2x, since almost half of all companies in India have P/E ratios under 28x and even P/E’s lower than 16x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
