High-priced stocks can spell profits too

f/031606_01.pdf">Click here for a detailed table  The 150 companies, that posted 50-99.9 per cent price appreciation over the last one-year highs, are currently trading at P/E of 26.42 times compared with a year-ago P/E of 21.62 times.  These companies posted average price returns of 53.6 per cent in the last one year, while the trailing 12-month profits rose by 53.6 per cent.  As many as 15 companies are traded at P/E of below 10, while 57 other are trading at P/E of 10-20 times. The 28 companies in this list are quite expensive and trading at P/E of over 30 times.  The 243 companies in A, B1and S groups have posted negative returns of 21.8 per cent or 10-94 per cent each over their previous highs in the last 52-week. These 243 stocks are currently trading at P/E of 19.53 times compared with a yearago P/E of 16.51 times.  The companies have fared badly on the profit front with 22.70 per cent decline in the trailing twelve months net profit.  

What are A, B1 & S-group shares?

A-group: Large cap stocks that fulfill all the listing norms have strong fundamentals. These companies command high trading volumes.

B1-group: Large as well as mid cap stocks that fulfill all the listing norms and have strong fundamentals but relatively low trading volumes. B1 group companies can be shifted to A-group in case of surge in volumes.

S-group: BSE IndoNext is formed to the benefit the small and medium size companies (equity capital up Rs 20 crore each), the investors in these companies and the capital markets at large. To first establish the trading platform expeditiously, the BSE have set up the BSE IndoNext market as separate trading market on its BOLT system as 'S' group.