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Piccadily Agro Industries Limited's (NSE:PICCADIL) Popularity With Investors Is Clear

Simply Wall St · 3d ago

With a price-to-earnings (or "P/E") ratio of 54.9x Piccadily Agro Industries Limited (NSE:PICCADIL) may be sending very bearish signals at the moment, given that almost half of all companies in India have P/E ratios under 25x and even P/E's lower than 14x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.

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As an illustration, earnings have deteriorated at Piccadily Agro Industries over the last year, which is not ideal at all. One possibility is that the P/E is high because investors think the company will still do enough to outperform the broader market in the near future. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

See our latest analysis for Piccadily Agro Industries

pe-multiple-vs-industry
NSEI:PICCADIL Price to Earnings Ratio vs Industry January 2nd 2026
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Piccadily Agro Industries' earnings, revenue and cash flow.

Is There Enough Growth For Piccadily Agro Industries?

The only time you'd be truly comfortable seeing a P/E as steep as Piccadily Agro Industries' is when the company's growth is on track to outshine the market decidedly.

If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 3.9%. However, a few very strong years before that means that it was still able to grow EPS by an impressive 328% in total over the last three years. Although it's been a bumpy ride, it's still fair to say the earnings growth recently has been more than adequate for the company.

This is in contrast to the rest of the market, which is expected to grow by 25% over the next year, materially lower than the company's recent medium-term annualised growth rates.

With this information, we can see why Piccadily Agro Industries is trading at such a high P/E compared to the market. It seems most investors are expecting this strong growth to continue and are willing to pay more for the stock.

What We Can Learn From Piccadily Agro Industries' P/E?

It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

We've established that Piccadily Agro Industries maintains its high P/E on the strength of its recent three-year growth being higher than the wider market forecast, as expected. Right now shareholders are comfortable with the P/E as they are quite confident earnings aren't under threat. Unless the recent medium-term conditions change, they will continue to provide strong support to the share price.

Many other vital risk factors can be found on the company's balance sheet. Take a look at our free balance sheet analysis for Piccadily Agro Industries with six simple checks on some of these key factors.

You might be able to find a better investment than Piccadily Agro Industries. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).