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basant
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   Posted: 15/Nov/2007 at 7:00am |
Originally posted by sajanvm
Basant - when you say that today'a market is biased towards growth and this allows us to pick businesses such as this at cheap valuations, it does ring a bell.
Was it not the master who said "In the short run, the market is a voting machine. In the long run it is a weighing machine".
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So he did. But I was just trying to explain the current market psychology. It does seem heavily biased towards growth Surprisingly people are not looking whether such growth is sustainable or would come at the cost of increased capex etc. See the power sector. Nowhere in the world do power companies command these sort of valuations but India is different or so it is being said.
While we can argue that times are scary or that everyone has gone crazy the point is that it becomes very difficult to put a lid on what is termed as "fair" valuation.
Prices can go higher or lower, but depending on our style we should choose stocks that should over period of time guarantee a recovery of capital - at least.
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sajanvm
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Joined: 18/Jul/2006
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Posted: 15/Nov/2007 at 8:22am |
Basant - fully agree with you. We all have to choose what style/philosophy we are comfortable with.
I for one am uncomfortable with today's obsession with reported EPS without any regard for free cash flow. As we all know, reported EPS really means nothing to a business owner.
Anyways, this bull market is really testing my temperament ! Its a real test of who I am !
Rgds
Sajan
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Sajan
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posted: 15/Nov/2007 at 11:19am |
| Nowhere in the world do power companies command these sort of valuations but India is different or so it is being said. |
Apparently, in 1950s - 60s, power utility companies were trading at a comparitively high P/E in the USA - because that's when industrial growth was zooming there. The economy simply needed more power plants.
Similar story seems to be unfolding here.
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kg
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Joined: 08/Mar/2007
Location: India
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Posts: 228
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Posted: 14/Dec/2007 at 12:06pm |
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stock has climbed up rapidly from 800 to 925 ...
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Lets rock
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msjala
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Joined: 01/Jul/2008
Location: India
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Posts: 29
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Posted: 19/Jul/2008 at 1:13pm |
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Enam and other Brokerage houses have downgraded Tata Tea.
To quote them, "Core
growth remains unattractive, EBIT growth at 7% CAGR over 2 years: The
sharp increase in tea (Kenyan prices ½ 37% in 2MFY09) and coffee bean
prices ( 27% in 2MFY09) is likely to impact margins, despite the
rational price hikes effected across categories."
Also, during the mayhem during Februaury, when other Tea Stocks went thru the roof, Tata Tea showed modest momentum.
Is Tata Tea still a good bet?
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Thanks,
Jala.
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 20/Jul/2008 at 8:41pm |
Originally posted by msjala
Enam and other Brokerage houses have downgraded Tata Tea.
To quote them, "Core growth remains unattractive, EBIT growth at 7% CAGR over 2 years: The sharp increase in tea (Kenyan prices ½ 37% in 2MFY09) and coffee bean prices ( 27% in 2MFY09) is likely to impact margins, despite the rational price hikes effected across categories."
Also, during the mayhem during Februaury, when other Tea Stocks went thru the roof, Tata Tea showed modest momentum.
Is Tata Tea still a good bet?
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I avoid getting into what other people are saying for a company, but I believe Tata Tea shall be a stock worth accumulating. After Nirma, this is perhaps one of the cheapest FMCG companies my screen is showing.....
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Jai Guru!!!
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prasham77
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Joined: 27/Jun/2007
Location: India
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Posted: 22/Aug/2008 at 8:42pm |
Tata Tea -- available at 2.8 PE , why?  Is something wrong or FMCG sentiment keeping it low. Any idea for outlook in coming years. Anybody having any latest reports?
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Let it be simple
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paragdesai
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Joined: 22/Oct/2007
Location: India
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Posts: 837
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Posted: 22/Aug/2008 at 9:38pm |
Originally posted by prasham77
Tata Tea -- available at 2.8 PE , why? Is something wrong or FMCG sentiment keeping it low. Any idea for outlook in coming years. Anybody having any latest reports? |
There is Extra ordinary gain on sell of Investment worth Rs. 1607 Cr.
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