Top Tweets for #highPE
हाई P/E रेश्यो सिर्फ़ भारत की कहानी नहीं है.
अमेरिका से लेकर जर्मनी और ऑस्ट्रेलिया तक, हर जगह मार्केट्स ऊंचे स्तर पर ट्रेड कर रहे हैं.
यहां देखिए कि ग्लोबल पिक्चर में इंडिया कैसे फिट बैठता है.
#PERatio #HighPE #Valuations #StockMarket #Investing #GlobalMarkets #USMarkets #Germany #Australia #IndiaMarkets
#Nifty #VarunBeverages #multibagger #HighPE #Pepsico #FMCG
Investing in high PE stocks (Part 1)
Its well understood that most of the return come by buying cheap and selling expensive. But in the modern times if an investor has to make money , he needs to get the art of investing in expensive stocks, something that I call Foresight Investing.
Good companies get capital from the private markets and hence don't come to the public markets soon. The probability of receiving a good compnay at attractive valuation stands reduced
If we need to build a portfolio, we need to participate in multiple sectors. Being tight fisted in valuation metrics will make us loose many sectors.
In this post, I discuss one such company:
Varun Beverages. I am narrating my personal experience of investing and holding the stock.
IPO in Nov 2016, TTM PAT 48 crs, Mcap 6000 crores i.e. issued at 120xP/E. Listed at par and closed at discount on debut.
A) Decision to Buy
It was the only listed branded soft drink company. It was one of the two licensees of Pepsi International in India authorized to manufacture, sell and distribute it's products.
I bought this stock in 2017 post demonetization. I saw that this business was showing volume growth even in the aftermath of demonetization. I was expecting a volume fall. But the compnay kept growing its distribution and retail footprint.
Pepsi international had announced that it would operate in India through franchisee model and move away from manufacturing, sales and distribution. It wanted to focus on its core-competency of brand building and product portfolio expansion.
This gave a clear signal to the investor that VBL would soo get increased geographical access to manufacture and sell Pepsi products. It was operating in North and East India and post 2018 it got the license to sell in Rest of India except J&K and Ladakh.
Hence, the company seemed to be poised in early stage of growth. I thought it deserves a market cap much more that 9000 crs at that time
Also, with Pan India license, VBL would also have a stronger negotiating power with its suppliers and distributors which would ensure margin expansion.
The Co follows Jan to Dec Accounting year
PAT 2016: 48 crs
PAT 2023: 2100 ( 72% PAT CAGR)
Revenue 2800 crs in 2016 to 16000 crs in 2023.
EBIDTA margin: 10% to 22% over 7 years
B) Conviction to Hold
This came from continuous capex announcements and margin expansion every year. The compnay also managed to grow its revenues over 22% and volumes in high teens consistently.
Key metric was to track Realization per Case: This is the amount the company receives from every 24 bottles of an product it sells. This number was continuously in uptrend all throughout. It went from Rs 120 in 2019 to Rs 187 in 2023.
Equity Dilution: VBL raised equity capital through QIP in 2018 for paying the license fee to Pepsi for pan India operations. At that time, the compnay had the balance sheet strength but decided the not leverage further and instead raised equity. I felt it was being too conservative and I generally don't appreciate dilution. But however the dilution was of ~ 5% hence I chose to look through. If there was another round of dilution, i might have exited the stock then.
Key decision to track was addition of new products to the portfolio: It added Tropicana in 2017, Sting in 2020. New products expand the addressable market of a business.
Today VBL is an INR 2.1 trillion company an still trades at 100x PE. The stock is 30x in 7 years (63% CAGR).
C) Learnings
i) Value consciousness is good but Foresight Investing creates big money.
ii) Analyzing the stage of a business matters more that mere P/E valuation.
iii) TINA (There is no alternative) factor plays a big role in defending high valuations.
Disclosure: No Recommendation, Own analysis
high PE stocks NSE #stocks #highpe #nifty #banknifty
stocks with PE more less 100
choose wisely for #diwalipicks
Stock Market Outlook Based on Deep-Learning: Returns up to 43.11% in 7 Days
https://t.co/KvxxDs9ddB
#SBOW #MARA #JAKK #MSTR #WISA #APEN #RILY #STGW #AVGR #RIOT #highpestocks #highpe #fundamentalstocks #beststocks #tradeideas #stockmarket #stockforecast #stockmarketpredictions
Stock Market Outlook Based on Deep-Learning: Returns up to 43.11% in 7 Days
https://t.co/hfolg1sVkl
#SBOW #MARA #JAKK #MSTR #WISA #APEN #RILY #STGW #AVGR #RIOT #highpestocks #highpe #fundamentalstocks #beststocks #tradeideas #stockmarket #stockforecast #stockmarketpredictions
Is investing so difficult? More than 5 times on high allocation. More than 41% CAGR.
Of course it is a different thing if you were listening to Value / 'Blame High PE' Super experts.
Bought at 108 PE and holding it still.
#DMART #AvenueSupermarts #Valuations #HighPE
DMart. Excellent Q1 sales update.
This is higher than last year Dec quarter, Dec is usually their best quarter due to festivals.
Looks like they are going closer to 40K Cr sales in FY23.
Stock Market Forecast Based on Algorithmic Trading: Returns up to 179.07% in 3 Months
https://t.co/PNrl3yp5c8
#TWI #UAN #PDS #VRTV #SM #GDEN #OVV #VTNR #CNR #CLF #highpe #highpestocks #stockmarket #stockforecast #stockmarketpredictions #algorithmicforecast #tradeideas
#Routemobile #HighPE
#OPM is declining on #QoQ basis.. Such High #PE can not sustain with these kind of results.. Expectations and reality has to match on both upper and lower sides🙏
@sidd1307 Despite having zero exposure to all these #cryptocurrency #nft #unicorn #unlisted #highpe #momentumstocks
May 2008 scary memories are again haunting , have to bear this pain as was in Bull Procession with crowd
An entire generation was scarred after the Great Depression
an entire generation is going to get scarred by the coming depression in blown up asset prices
#cryptocurrency #nft #unicorn #unlisted #highpe #momentumstocks are all set for a multi-year decline
Stock Market Predictions Based on Genetic Algorithms: Returns up to 15.94% in 7 Days
https://t.co/XLIuj47tC4
#RCMT #UEC #CNDT #SBOW #UONEK #CLF #TTI #DCTH #URANIUM #PDS #highpe #fundamentalstock #stockforecast #stockmarket #stockmarketpredictions #algorithmicforecast
People are going to pay very heavy tuition fees for the most basic concept of finance
Higher interest rates = higher WACC = lower PE multiples
Go buy your brealey & Myers/ Prassanna chandra today and save some future tuition fees!
#aequitas #highpe #value #valueinvesting
The biggest losers today are all financials.
There will be a slow decay in financials over the next few years
Incidentally #NIFTYMETAL is up today
#banknifty #bankkng #FinancialServices
Ett till kandidat till aktiebubbla är CDON och där pyser det nu ut spekulationsluft ur ballongen. Plötsliga kursdubblingar i bolag med stora utmaningar är är sällan uthålliga.
DMART 3200 or 1900 -->Read and share your opinion
https://t.co/1FiVdWrZRB
I am waiting on sidelines as of now!!
@caniravkaria #DMart #dmartindia #highpe #stocks #JioMart @kesarispeaks @harpreetsubhi @imacuriosguy
Hit R7 with 2732 points today and then R8 the next set. #battlers #GirlsThatPvP #pokemon #pokemongo #GOBattle #highpe #fightsolation #getrekt #getbeamed #yousoundscared #GBL #Hot !
Most of these names are #HighGrowth and #HighPE and could add better earnings to the #Nifty to the possible outgoing names like 5/n
Price-Earnings Ratio: All Myths Busted
#lowPE #highPE #Multibagger #investing #stocks
#MarketSmithIndia... https://t.co/mYJGGIyt4L
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