I'm trying to understand the exact same thing. How can a company that has given a minimum of 100% growth in revenue over the last 8 quarters and 100-200% growth in net profits in the same period trading at a trailing PE of less than 18x now. This is assuming 0 growth in the coming quarters (Sept quarter's profit is at 23.6 crores, therefore full year's profit's at 100 crores). With a 20% growth in NP QoQ (they've been growing at a faster clip than this if take the last 10 quarters) for the coming quarters this should be close to 130 crores for the full year which makes this even cheaper @ 14x and falling even faster in the coming years.
In fact, with the demonetisation move coming in recently and the rupee falling further (besides the bumper results this quarter), I expected this stock to have been one of the few resilient ones to have been able to withstand the market crash but it seems to be falling faster than other stocks that will have a significant impact on their earnings growth in the coming quarters. I don't see 8k Miles being affected in the coming quarters due to the demonetisation move as their business largely comes from the US and a few other countries. In fact, I can see some tailwind from the fall in the rupee.
Has anybody been able to understand the market's reaction to the stock over the last couple of weeks?
Disclosure: Forms 6% of my portfolio. Added some during the recent market correction and looking to add more at the current price.
Could Trump's (and hence the wiping out/partial repealing of ObamaCare) victory possibly be the reason for the correction in the stock price? Wonder how much of an impact that would have on 8k Miles. Views invited.