Britannia & Asian Paints - Obscene p/b but tempting

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by vij, Feb 27, 2016.

  1. vij

    vij Member

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    Britannia and Asian paints have p/b of 26 and 19.5 respectively. That makes me almost cringe. Try as I might I still cannot exclude them from my fresh investments because both of them have pricing power and a 5-10 year consistent graph. And Britannia can still be a mini multi-bagger with their increasing forays into lesser explored segments.

    They are basically moats and deserve that obscene p/b....don't they. I guess I am looking for confirmation bias lol.
     
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  2. Farhan Ghumra

    Farhan Ghumra Active Member

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    I am also interested to include both in my PF. What levels would be good to enter?
     
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  3. vij

    vij Member

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    Simple ans: sips over next few months. I doubt they will be available at better levels in 2017.
     
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  4. New_Investor

    New_Investor Active Member

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    Patanjali is eating into the biscuit market. Can you ignore Patanjali? Britannia can face severe competition from Patanjali in the Biscuit Market. Don't you think so?
     
  5. vij

    vij Member

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    Biscuits business is relatively safe imo, especially the premium segment wer Britannia rules. They are also looking at exporting now.
     
  6. bholu

    bholu Active Member

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    I think Asian Paints is a better stock to hold than Britannia
     
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  7. vij

    vij Member

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    I think so too. But I keep reading about expansion plans and how they are entering diary in a big way and how that can also improve their existing biscuits business that uses diary products a lot. Also they are going to begin exports. Stuff like that.

    And the biggest temptation is that they are among the fastest wealth creators in the past 5 years and consistently so. Their management is also confident of tripling sales over next 5-6 years.
     
  8. Farhan Ghumra

    Farhan Ghumra Active Member

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    I think Patanjali is temporary phenomena.
     
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  9. darth

    darth Active Member

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    Am just back from a visit to the rustic rural North India.. And can definitely say that at the moment Patanjali isnt a temporary phenomena there atleast. It's presence is certainly palpable... Be it biscuits, or jams or other consumer goods.
     
  10. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Patanjali is growing force in rural and metro. Margins of big cos will be affected it seems by undercutting of Patanjali products.
     
  11. vij

    vij Member

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    Last 2 years have been the best years for britannia irrespective of baba brand. If anyth britannia doing better than ever. No denying that.
     
  12. Farhan Ghumra

    Farhan Ghumra Active Member

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    Probably Patanjali will give stiff competition to HUL or Nestle. Has any body checked financials of Patanjali?
     
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