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Stock valuations attractive after correction; good long-term bet: Analysts

Experts said the correction seen in the past one year was inevitable as valuations had become unsustainable

Markets, LTCG tax
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Sundar Sethuraman Mumbai
The markets may not bounce back as yet, given the political uncertainty and rising tension between India and Pakistan.

However, a steep correction, particularly in the broader market, has made valuations attractive for many companies with good growth potential. 

The valuation metrics such as price-to-earnings (P/E) and price-to-book (P/B) have come off sharply for many small- and mid-caps, making them good bets for long-term investors, say analysts.

Consider this: The P/E multiples of every two out of three BSE 500 stocks are currently lower than what they were a year ago. Also, the P/B ratios for small-caps and mid-caps have corrected by 25

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First Published: Feb 28 2019 | 12:18 AM IST

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