The higher prices of stock offerings may sometimes conceal underperformance or liquidity concerns.
by Kumar Shankar Roy
Consumers often gravitate towards offerings available at
higher price points due to the
perception of higher value. Does
this strategy work in the stock
market? Many say it does and cite the example of MRF. Ten years ago, one share of MRF
cost aneatz20,000. Today, each scrip of the
same tyre maker is close to a whopping%1.5
lakh. There are quite a few pricey stocks in
the stock market. High-priced stocks appear so because of the number of out standing shares be in glow relative to the company’s total market value. A nalysing the
performance and potential of high-value
stocks reveals intriguing insights. Despite
impressive revenue and profit, many toppriced stocks face challenges, including
underperformance compared to the sector,
liquidity concerns, and limited analyst cov-.
erage. Here are some figures that will help
you decide whether you should go for these.
0 Comments