The company's stable but low ROCE and the increase in capital employed suggest that the business isn't deploying the funds into high return investments. This doesn't inspire confidence in the company's potential to become a multi-bagger.
The company's moderate P/E ratio may be at risk due to its lower than market growth forecast. Maintaining the current P/E ratio could be challenging given the level of earnings growth.
Aecc Aero-Engine Control has weaker growth expectations than the broader market, reflected in its P/E ratio. Future disappointment risk exists if the P/E aligns with the limited growth outlook.
Aecc Aero-Engine Control Ltd's poor ROCE paints a bleak outlook for its multi-bagger potential due to ineffective deployment of funds into high return investments, despite capital increase. The market remains hopeful owing to historical growth.
AECC Aero-Engine Control Stock Forum
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