Why Investors Shouldn’t Be Surprised By RNFI Services Limited’s (NSE:RNFI) 26% Share Price Surge
Despite an already strong run, RNFI Services Limited (NSE:RNFI) shares have been powering on, with a gain of 26% in the last thirty days. The annual gain comes to 175% following the latest surge, making investors sit up and take notice.
Since its price has surged higher, RNFI Services may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 51.5x, since almost half of all companies in India have P/E ratios under 28x and even P/E’s lower than 15x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
