Sold out BSE today. Not played upto expectations even before last 2 days and wanted to add cash for next set of buys.
You were right. Got battered yesterday. But long term looks extremely cheap and stable. Will keep holding and if goes below 400 will look to add.
Was just looking at Differentials between US listed companies and the Indian subs of the same for research purposes over the last week.
Cummins Inc
Market Cap: $37 B
Revenue: $32 B
Net Income: $1.94 B
ROE: 19.6%
P/S: 1.3
PE: 18
Cummins India
Market Cap: $12B
Revenue: ~$1.1 B
PAT: ~$200 Million (other income of $50 million)
ROE: 28.8%
P/S: 12
PE: 63
Yes, Indian sub is growing faster at 30% vs 10% but P/S and PE are out of whack. And historical PE ratio is approximately 32. Yes, I know about CPCB4 series on engines.
Same story for ABB, Siemens, Hitachi and others where Indian subs are at PE of 80/100/120 vs Main company at sub 20 PE. The entire cap good space is indefensible in terms of pricing. Below I have attached chart for NSE MNC index PE ratio
The Green line refers to PE ratio and is almost touching 50 now. Would love alternative comments on this.
Have exited BSE.
While it has considerable growth prospects, the govt is showing considerable intent on cracking down on F&O activity. Whether it be from statements from RBI, FM and SEBI.
Have exited with minor losses around 2750 and 2650 over last 2 weeks.
