📉 Lotus Bakeries has experienced a significant drop, with a 20% year-to-date decline and nearly 30% in six months.
🍪 Despite the drop, the company still has a high P/E ratio of 40, raising concerns about overvaluation.
👍 The analyst likes the company and is considering an entry point after conducting his analysis.
⚠️ The analyst notes that a high P/E ratio exposes the company to potential 50% drops.
@bernardodegarcia:
“Lotus Bakeries, with a P/E ratio of 40, has experienced a significant drop, with a 20% year-to-date decline and nearly 30% in six months. The analyst likes the company and is considering an entry point after conducting his analysis, although he believes it might drop further. He notes that a high P/E ratio exposes the company to potential 50% drops, but it remains a defensive company with good return on invested capital. The analyst believes a P/E of 40 is too high, suggesting it should be closer to 35, but even that seems like an exaggeration.”
Watch the exact part of the video where Bernardo talks about Lotus Bakeries here:
View the video on YouTube.
Read more articles by the world’s top 100 analysts on Lotus Bakeries at the following link. BLOG.
