Friends please read the advice on Marico Ltd., Jyothi Laboratories and Motherson Sumi

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by VINU CN, Sep 7, 2015.

  1. VINU CN

    VINU CN New Member

    Jul 21, 2015
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    Advice on Marico Ltd., Jyothi Laboratories and Motherson Sumi

    Friends Please read the reply From Ms Meenakshi

    Well, all three are excellent stocks. They have excellent management, strong dominant position in the market place, excellent financials. I think trying to differentiate between these stocks will amount to hair-splitting especially in the long-term. All I can say is that these are ideal buy-n-forget stocks. They will continue to grow their sales and earnings for several years in the future.

    Having said that, in the short-term, Motherson Sumi may face some headwinds owing to the slowdown in China. Also, its valuations (P/E of 68x) offer little comfort. The other two stocks are also expensive at a P/E of about 44x though one is unlikely to get these stocks cheaper owing to their pedigree.
    One can see the resilience of these stocks because despite the carnage in the market, these stocks haven't lost much value. ( VALUE PROTECTORS, WITH LIMITED UPSIDE BUT SOMEWHAT LESS DOWN SIDE RISK)

    However, the larger issue to be debated is whether at this stage of the market, one should look at these gems or at the some of the other stocks which have fallen quite a bit. When the market recovers, the fallen stocks are likely to offer more upside rather than these stocks.

    Of course, everything depends on the risk-profile of the investor and whether he would like total peace of mind or is willing to bear the risk of volatility.