Tuesday, August 12, 2014

AHPC

Rajesh Sharma
AHPC
In a company's life when there is fast growth, EPS may decline, PE ratio may go up and other financial indicators too seem derailed. But, after the consolidation phase things may come inline and we could analyze as one normal company. The same has happened to AHPC now. There are two major factors derailing its outer look - 1:1 Right shares issued more recently. That money has not earned anything but profit is distributed to such funds too. And, second, its reserve has gone up as the company has transferred a sizable amount to its reserve. Hence, we should see AHPC from growth perspective rather than using indicators uniformly. In my opinion, AHPC is a good company to invest but I am not sure it is good for trading or no.

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