Why We’re Not Concerned About Borosil Limited’s (NSE:BOROLTD) Share Price
With a price-to-earnings (or “P/E”) ratio of 62.6x Borosil Limited (NSE:BOROLTD) may be sending very bearish signals at the moment, given that almost half of all companies in India have P/E ratios under 27x 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.
Borosil hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. One possibility is that the P/E is high because investors think this poor earnings performance will…
