Current Valuation Metrics and What They Indicate
L.K.Mehta Poly. trades at a price-to-earnings (PE) ratio of 31.23, which is considerably high relative to many companies in the plastic products industry. The price-to-book (P/B) value stands at 1.68, suggesting the market values the company at nearly 1.7 times its net asset value. Enterprise value (EV) multiples such as EV to EBIT (19.29) and EV to EBITDA (17.61) further reinforce the premium investors are willing to pay for the company’s earnings and cash flow generation.
However, the company’s return on capital employed (ROCE) is modest at 7.53%, and return on equity (ROE) is even lower at 5.37%. These profitability ratios indicate that while the company is generating returns, they are not exceptionally high compared ...
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