Why Investors Shouldn’t Be Surprised By Waaree Energies Limited’s (NSE:WAAREEENER) 25% Share Price Surge
Waaree Energies Limited (NSE:WAAREEENER) shares have had a really impressive month, gaining 25% after a shaky period beforehand. 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.
Following the firm bounce in price, Waaree Energies’ price-to-earnings (or “P/E”) ratio of 41.6x might make it look like a strong sell right now compared to the market in India, where around half of the companies have P/E ratios below 26x and even P/E’s below 14x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
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