Why Investors Shouldn’t Be Surprised By Sky Gold Limited’s (NSE:SKYGOLD) 27% Share Price Surge
Sky Gold Limited (NSE:SKYGOLD) shares have continued their recent momentum with a 27% gain in the last month alone. The annual gain comes to 280% following the latest surge, making investors sit up and take notice.
After such a large jump in price, Sky Gold may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 77x, since almost half of all companies in India have P/E ratios under 32x and even P/E’s lower than 19x 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.
Recent times have been quite advantageous for Sky Gold as its earnings have been rising very briskly. The P/E is probably high because…
