| 142.06 | 42.12 | 21.52 | 13.62 | 1752.49 | 17.67 | 13.67 | 21.91 |
Above are P/E ratio PVR of last 8 years. It has high moat today and one can hope for the same in future. Requires higher margin of safety.
Inox has poor ROE, Debt level.
Kunal
Hi Hitesh, Can Inox trading at a PE of 40 really move up 50-100% from here on? I have taken a position at 112. dont decide.regarding else.Hitesh,
I appreciate your sincere view. I am not convince for JB - it has inconsistent performance. I dont think so it is long term play. It may be play for shorter but I will skip it.I prefer Ajanta, Shilpa over others midcap.
I shall admit that I have little or no knowledge of Pharma industry. However I am looking into industry because of diversification, growth in fundamental stocks. It will ask my higherconvictionlevel to invest here.
Kunal
Thanks, Hitesh. Just one follow up question - where would you slot Repco in the quality of business ratings (A/B/C etc.) that were being discussed recently?
HG,
business quality of repco is a notch lower than gruh finance… repco has ocassional NPA issues which get averaged over the quarters whereas gruh has practically nil. Plus the parentage of gruh is the best.
hitesh.
hi
repco mkt cap at 2000 cr and gruh at 4000 cr…ideally gruh has to move up first to make repco follow…because as gap between them decreases one will be anytime comfortable in gruh
rakesh jhunjhunwala bullish on dewan housing speaks something about housing finance companies…he has said that hfc have 500 times market size…so this is just a the start for a long term growth story
Hi Hitesh ,
What are your views on PVR?
Currently PVR(along with cinemax) and inox dominates tier 1 cities .PVR can use the synergies post the merger with cinemax and turn into a even stronger player in this sector .
Sirji,
How is Finolex Cables looking on the charts? Can the move on Friday be counted as a ‘breakout’,making way for higher levels? Is there any level charts indicate?
Hitesh,
What is your current view on the market? With the current rally in mid caps, is it wise to book profits / increase the cash?
Am holding some stocks with good returns like Atul A, Ajanta, Accelya, FDC, Dhanuka, Monsanto among other.
Also, I want to know what is the valuation/ price for Symphony where one can consider exit ?
Regards
Hi Hitesh,
Imagine you have a stock on which you are bullish for next 5 yrs. You expect it to grow at 20-30% CAGR over this period.
Will you sell it at some PE? If yes, what PE?
How will you arrive at the price/ pe/ pb when you sell that stock?
Regards
Hitesh,
You have been always bullish on Kaveri Seeds (even though it is not a compounding machine yet!!). Recently you have indicated 2100 level as Target. Considering 130+ EPS for FY14E the stock is trading at 14 PE. Can one accumulate at this level of 1800? Thanks!
Hi Hitesh,
could you please advise on Electrosteel Casting & Shree Renuka Sugar at current level? I have recently purchased Inox following your view.
@sourabh agrawal… I dont track pvr… But on inox I am bullish purely on technicals.
@nadakarni… Most of the times its no use predicting markets. But in view of the two factors… election outcome and fed tapering, I would prefer to be cautious. regarding booking profits it would have to be your own call.
@sagar… Fin cables looks bullish.
@vamshi krishna… Since I am holding kaveri from much lower levels, I am quite comfortable holding it… Stock does seem headed higher but with run up valuation does keep getting stretched although its not overtly expensive. Neither is it dirt cheap as it was when the news/rumours of “Selling by IDFC funds” took the stock to 1400-1500 levels. Thats when I was adamant that it was a great buy.
@Jatin Kalra… I am not too much of a hypothetician… I take things as they come so I wouldnt be able to answer your question accurately.
Actually I am confused when to sell good stocks or should I sell them at all.
So maybe if you can explain a with a specific example, it would help me.
You are bullish on Symphony (I am also bullish). It should grow at 20-30% CAGR in my view.
So when will you sell it? At some PE or when grows slows?
I reiterate my earlier advice… Dont follow me blindly. Please do your own diligence and act… In case of technical trades I can change my view at the drop of a hat and that should leave you no where if u follow me blindly.
Coming to electrosteel and renuka, I dont have much idea about them.
Jatin,
I think selling may be the more difficult part of investing. In case of the earlier case described by you, if u are sure that your company is going to grow at more than 25-30% cagr for next 3-5 years, then I think it makes sense to hold on. At some stage there will be a discernible but slight de rating which should alert you to the market mood wrt the company. e.g hdfc bank… it keeps growing at 25% cagr since many years and I feel being a bank, size would in fact work in its favor in growth. But still somehow since past few quarters, there seems to be slight apathy to it…
e.g Page inds… Its been growing at around 30% cagr atleast… Markets seem more confident about its growth and accords it a higher PE… Often PE assigned is not only limited to growth but cash flow generation, future potential in comparision to market cap etc…
If one is not too sure then selling might be done in small test doses when one feels that the company valuations are overheated.
The other more important reason for selling is that you have latched on to a better opportunity and want to shift on to it.
Hello Hitesh, thanks for your caution. However, I have been reading about for a while. I got interested in these after looking at huge crowds turning out to watch even crappy movies. The num of 100+ crore movies is going up. Recently almost any movie made with Khans/Hrithik are crossing that 100 crore mark. Even the ticket prices are moving up alot. There is a tremendous room for growth as they expand to smaller cities. I was looking for an entry into these stocks and the technical pattern you suggested helped me decide to enter.
PVR has run up a lot. It might stay here for long due to its strong position. I’d rather time my entry lower.
Hi Hitesh / Vicky,
I attached Dewan Housing and Repco quick comparison matrix for valuation. Can you comment on huge P/E difference ?
Kunal
Repco & Gruh are into niche Non-salaried & lower income class. Possibility of slow-down is also less there. Good NIMs and spreads also.
That’s why market likes them.
Repco has lower ROE due to less debt/equity (generated equity from IPO). Its ROE will increase on debt increase.
Read this Basant Maheshwari article on Repco for more clarity-
Dewan, Canfin, Indiabulls are cheaper because of one or other concern. Then can be outperformers if they continue to grow fast & profitably. All HFC can make money due to lower penetration.
