[ad_1]
While it is important to get hold of stocks when they are trading at lower valuations, it is equally crucial (if not more) to weed out lackluster performers whose earnings growth is not able to cope with their share price rally.
In short, overvalued stocks should also be given a closer look to, at least cut down on their weightage to optimize the margin of safety. In that vein, here are 3 large-cap stocks that are trading at the highest TTM P/E ratio, easily over 100.
Macrotech Developers Limited
Macrotech Developers (NS:) is a well-known real estate developer with a market capitalization of INR 65,646 crore. The company reported a TTM net income of INR 394.27 crore, majorly due to a profit decline to INR 178.4 crore in Q1 FY24, compared to INR 744.4 crore in the preceding quarter.
The stock has risen 23.3% in the last 12 months, and both these factors combined – lower earnings and increased share price have contributed to an elevated TTM P/E ratio of 166.5, making it currently the most expensive large-cap stock on the NSE.
Trent Limited
Trent (NS:) is a retailer of ready-made garments with a market capitalization of INR 73,340 crore. There’s no doubt that the company is growing aggressively, and has been increasing its net income at a yearly rate of 38.5%, over the last 5 years, not bad for a large-cap. However, one also has to note, that the pace of earnings is somewhat slower than the rise in the share price.
The stock has risen over 47.5% in the last 12 months and even FIIs have trimmed down their stake from 26.82% in June 2022 to 25.01% in June 2023. Currently, the stock is trading at an expensive TTM P/E ratio of 150.41.
Adani Green Energy Limited
Adani Green Energy (NS:) is an Agani Group company that is engaged in building and operating solar and wind power plants, having a market capitalization of INR 1,50,340 crore. This stock has been trading at expensive valuations for a long time and is still so despite a huge fall of 59.6% in the last 12 months.
The company’s net income has grown from INR 210 crore in FY21 to INR 1,082 crore (TTM), however, it is still trading at a TTM P/E ratio of 138.95. But interestingly, even at such a high valuation, FIIs have increased their stake, from 15.14% in December 2022 to 18.26% in June 2023.
In case you want to connect with me, reach out on Twitter. My handle is – aayushxkhanna
Read More: The Power of Journaling: A Game-Changing Stock Trading Hack!
[ad_2]
Source link
