Britannia & Asian Paints - Obscene p/b but tempting

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.

 

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

 

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

 

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?

 

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

 

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

 

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.

 

I think Patanjali is temporary phenomena.

 

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.

 

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

 

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

 

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