Jockey gains brand share, pips Amul Macho, Rupa:
Do the company publish this data?? I am trying to locate the source of this data…
Elephants can dance…outstanding results by Page Industries…
FY2018 pat up 39% over FY2017
Q4 2018 pat up 40% over Q4 2017
Philip Fisher’s words come handy here…
“If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never.”
Request you to go through top 100 high PE stocks of 6 years back, Sir. I missed many due to high PE as an elimination criteria.
What gives confidence on the future of the business is this interview by the promoter Genomal. When asked by Lata in an interview in Sept 2017 whether the company can grow at 20% for the next twenty years, Genomal replied ‘EASILY’. That said it all.
They have grown by around 40% this year. One should be satisfied if they grow by even 20% each year for the next 10 years.
The problem with high priced, high growth, market leaders with fantastic return ratios is that you can only be a seller of the stock (thinking that the PE is too much now, so lets sell !!). Very difficult to buy such stocks. Unfortunately, as a seller, one will only regret the decision as growth continues and the stock continues to move higher and higher !!!
Interesting reading on Page Industries in the link below …even I fell to the theory that P/E of Page has gone too high and sold some around at Rs 14,000. Just forgot my lessons from Philip Fisher’s ‘Common Stocks and Uncommon Profits’…this book is a MUST, MUST read for those who want to make serious long term money …
Especially Chapter 8 Point 4 (‘Don’t assume that the high price at which a stock may be selling in relation to earnings is necessarily an indication that further growth in those earnings has largely been already discounted in the price’) (Page 130 in my book)
And Chapter 6 on ‘When to Sell’ (especially Pages 110 to 113 of the chapter in my book)
The price equity ratio is too high and does not encourage me to buy. However, profit growth from here also is going to be in excess of 20%.
Discl. : Sold, not regretting but tough to buy again.
Yatharth, you are right. It is very tough to buy it back now. You will always wonder why buy a stock at such a PE and not a lower PE stock.
I also feel Page is likely to grow above 20% p.a. but I will be happy if on an average, the stock returns 15%-20%. P/E ratio will then slide downwards.
It always seems tough to buy these type of stocks due to v high PE they trade at. I am tracking this stock since 2000 rs but its always seemed to be trading at high multipled. Finally I bought at 15000 rs 2-3 years back , taking some risk. I still feels its expensive and not getting courage to buy. I think to invest in such stocks , one needs to buy on every 10-20% correction irrespective of PE. If we will look on PE , it will always looks expensive
Jockey agreement extended till 2040.