What is PE Ratio?

PE stands for Price-to-Earnings. It tells you how much you're paying today for every ₹1 of yearly profit the company makes.

If a stock has a PE of 20, it means you pay ₹20 for every ₹1 the company earns each year.

A lower PE can mean the stock is cheap OR that the company isn't growing much. A higher PE can mean investors expect fast growth.

It's just one clue, not the whole story. Always compare to other companies in the same sector.