Valuation Metrics and What They Indicate
At a price-to-earnings (PE) ratio of 16.41, Ruchi Infrastr. trades at a moderate level relative to its earnings. This figure is lower than several peers such as Gokul Agro and Gujarat Ambuja Exports, which have PE ratios exceeding 20, but higher than some very attractively valued companies like BCL Industries and KSE. The price-to-book (P/B) ratio of 0.78 suggests the stock is trading below its book value, often a sign of undervaluation, though this must be weighed against the company’s return metrics.
The enterprise value to EBITDA (EV/EBITDA) ratio stands at 10.32, which is in line with the sector average and peers like Gokul Agro. However, the EV to EBIT ratio is notably high at 50.82, signalling that operating earnings befor...
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