InvestorQ : ANY IDEA ABOUT IDFCFIRST BANK? BECAUSE I AM THNKING TO BUY BUT COMPANIES P/E RATIO IS NOW NEGATIVE. SO TELL ME IS IT RIGHT TIME TO BUY OR I WAIT FOR A GOOD CHANCE?
niraj chourasia made post

ANY IDEA ABOUT IDFCFIRST BANK? BECAUSE I AM THNKING TO BUY BUT COMPANIES P/E RATIO IS NOW NEGATIVE. SO TELL ME IS IT RIGHT TIME TO BUY OR I WAIT FOR A GOOD CHANCE?

Answer
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Aditi Sharma answered.
5 months ago


Firstly, I am not sure why you are trying to buy companies with negative P/E. You normally buy a stock when there is a genuine scope for the stock to turnaround. In the case of IDFC Bank, they are already under strain due to the quality of assets. Also, they get a lot of retail assets with the merger with First Capital and that is likely to face strain now. It is certainly not a great banking stock to be invested in.