Why Investors Shouldn’t Be Surprised By MIC Electronics Limited’s (NSE:MICEL) 30% Share Price Surge
MIC Electronics Limited (NSE:MICEL) shareholders are no doubt pleased to see that the share price has bounced 30% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 18% in the last twelve months.
Since its price has surged higher, given around half the companies in India’s Semiconductor industry have price-to-sales ratios (or “P/S”) below 5.7x, you may consider MIC Electronics as a stock to avoid entirely with its 16.7x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
