DEFENCE stocks, one of the most demanded assets in the multi-year bull run in recent years, have come under selling pressure, with most components falling 20-30% from their July 2024 highs as the latest reported earnings are unable to justify their sky-soaring valuations.
Market analysts believe that the short-term party may be over due to disappointing earnings and valuations run over and above its fundamentals.
"The peaked-out valuations were a matter of concern as the price-to-earnings multiple of many defence companies started trading higher when compared to the five-year average earnings multiple and Q1 disappointing earnings added fuel to the corrections,' said Prashanth Tapse, senior vice president (Research), Mehta Equities.
Tapse added that the room is still open for some more price corrections based on fundamental theories.
この記事は The Morning Standard の August 27, 2024 版に掲載されています。
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この記事は The Morning Standard の August 27, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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