Nifty PE crosses 24|A statistically informed entry-exit model!

While this is not a thread on dmart and dmart valuations- in general though, i think one needs to have a view about how the future will unfold for a co and what would be its expected margin profile, topline, bottomline, return ratios etc going forward depending upon what stage it is in its growth cycle. Dmart is growing agressively and is posting fantastic numbers. Every year its ebitda margins expand. I think not only will it reach 25% roe but exceed it while expanding rapidly. If it does 7% pat margin and turns equity 4-5 times - 25% becomes a very conservative number. Similarly, i have views about other cos which may or may not pan out but i wouldnt call them arbitrary.

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