Shares in Lovable Lingerie jumped 5 per cent, after reports that Reliance Mutual Fund has acquired further shares in the company.
The mutual fund has reportedly hiked its holding in the company from 4.73 percent to 5.03 percent. The stock was last trading at Rs 284, up almost 5 per cent over Wednesday's close.
Lovable Lingerie is India's leading women's innerwear manufacturers, which started operation ways back in 1987.
The company recently reported its quarterly numbers, which were marginally below estimates. The company reported a net profit of Rs 31.7 crores, as against Rs 33.90 crores reported in the previous quarter ending Dec 31, 2016.
Lovable Lingerie reported an EPS OF Rs 13.39 for the year ending March 31, 2016. Hence, the stock is trading at a p/e of almost 22 times, trailing EPS. This is definitely not cheap.