Investors should not chase low multiple stocks blindly

i. Low multiple stocks:
The P/E is sometimes referred to as the "multiple". It is calculated as (Market value per share / Earnings per share). It shows how much investors are willing to pay per rupee of earnings.

ii. Low multiple also reflect poor fundamental: Generally all stocks fall in bearish market conditions, including stocks with strong fundamentals, resulting in low P/E. However, it is crucial to filter the stocks when picking low multiple stocks as stocks with poor fundamentals also trade at low multiple.