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Himadri chemical

Discussion in 'Technical Analysis' started by mk27418, Apr 8, 2018.

  1. mk27418

    mk27418 Active Member

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    mk27418, Apr 8, 2018
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  2. shabbir

    shabbir Administrator Staff Member

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    At 55 PE why you want to consider this stock?
     
    shabbir, Apr 8, 2018
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  3. mk27418

    mk27418 Active Member

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    Sir I am trying to understand tech words p/e , EPs ... I googled these but its not reaching to my mind.. thus I mentioned here.. I checked graph, it's growths, profits, it's type of products etc.. thus I moved for suggestions... Thanks..

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    mk27418, Apr 8, 2018
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  4. shabbir

    shabbir Administrator Staff Member

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    I will try to explain them in short as of now and then try to add them as articles on my blog.

    EPS is earnings per share or the total profit company makes divided by the total number of shares of the company.
    PE is ratio is the multiplication of EPS by a factor (know as PE ratio) for the current price.

    So if EPS of the company is Rs. 20 and if the company is trading at 1000 Rs at the moment, the PE ratio of the company is 50 because 20x50 is 1000

    So when companies have a very high PE ratio, the earnings and other expectations are high for the company and so if they can't deliver, PE ratio decreases.

    As an example LUPIN is at a PE ratio of 24 right at this moment but when it was at all time high, it was above 40 PE ratio. So there is a decrease in PE ratio given to the business because of the bad forecast condition of the business.
     
    shabbir, Apr 9, 2018
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  5. mk27418

    mk27418 Active Member

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    Thanks sir... Now I understood. Thank you so much....
    High p/e = good forecast and less p/e means bad forecast. what pe score we should consider for buy if other parameters are passed.

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    mk27418, Apr 9, 2018
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  6. shabbir

    shabbir Administrator Staff Member

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    Every sector and industry will not have a good PE to buy the stock. Some are good at 40 like consumers and some are bad at 20 like metals and commodities.
     
    shabbir, Apr 10, 2018
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  7. mk27418

    mk27418 Active Member

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    Thank you sir so much.... I will wait for blog.. I will request to add some other functional names... call, put, options...etc..
     
    mk27418, Apr 10, 2018
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  8. shabbir

    shabbir Administrator Staff Member

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    They are already on my blog here https://shabbir.in/call-and-put-options/
     
    shabbir, Apr 11, 2018
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  9. bhat64

    bhat64 Apprentice

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    Himadri is a hot stock in a hot sector. For investing I follow Peter Lynch hence stay away from such stocks.


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    bhat64, May 18, 2018
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