Curious to know, you said you will stay away from EMS companies trading at exorbitant valuations⌠Then whatâs the reasoning behind your new investment in EMS company Virtuoso Opto which is trading at p/e of more than 80.
Virtuoso is doing capex for compressor and expending in deep freezer market. Forward PE is around 20, discounted for FY25. FY25 Sales projections are 1100-1200 cr and current EV is 1300 cr hence EV/Sales is close to 1. This is my thesis to isolate as cheapest bet. Had PG, Amber and Epack at different levels, made money but sold at higher levels and they rise continuously.
2025 new year begins with a long awaited correction in mid and smallcap. Though we are only 7-10% fall in the index in mid and smallcap but large fall across stocks.
My sense correction of less than 10% from 52 week high are relatively strong stocks.
With such steep correction comes a relief rally too and January will be interesting to see which stocks rebounds
I have generally added to strong stocks in last 4 years in such correction and sold once where stocks have correcter 20-30% and bounce hasnt been strong coupled with muted results.
Its a good time to evaluate portfolio and load up good growth stocks where results are strong
One mistake which i see is people wait for their stocks to come back to original price from where it fell before they can sell ( usually doesnt happen sooner takes couple of quarters ).
Fully invested may churn to stronger names in fall.
