The Hair oil business of Bajaj Consumer had been fading since 2015-16. If they do not get their act right, it will keep on fading. What PE should it then trade at? 12 PE of today can be 15 PE for next Quarter and 20 PE for Quarter next to next if inflation keeps hurting and business keeps fading…
I am just trying to ask these questions to myself as I see value in its cheap valuations but most of the time in my past experiences, such cases have been value traps…you can quickly make a decent profit but reversal is followed thereafter…so another question I would ask myself is if I am looking it from perspective of mere profit trade or for investing for long term…