Valuation Metrics and What They Indicate
At present, Shankar Lal Ram. trades at a price of ₹69.96, close to its 52-week low of ₹52.03 but well below its 52-week high of ₹96.92. The company’s price-to-earnings (PE) ratio stands at 37.32, which is considerably higher than the broader market average and suggests that investors are paying a premium for its earnings. The price-to-book (P/B) ratio of 3.85 further indicates that the stock is valued at nearly four times its book value, a level that typically signals expensive valuation in the miscellaneous sector.
Enterprise value multiples also reinforce this view. The EV to EBIT ratio is 26.01, and EV to EBITDA is 25.84, both of which are elevated compared to many peers. These multiples suggest that the market expects strong...
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