How can you use one metric to justify a stock? Take an example of this company has a price to sales of just 6.42 but then a PE of close to 80, it made 18Cr profit last year on a topline of 224Cr, 10Cr less than EcoReco which made 18Cr profit over a topline of 28Cr.
Just one metric doesn’t suffice, usually.
Posts in category Value Pickr
Eco Recycling Limited (Ecoreco (15-05-2024)
Eco Recycling Limited (Ecoreco (15-05-2024)
you are looking at sales
but they have a margin for 60%+.
they are targetting 300 Cr of sales with 60% margins, which comes to 180 cr EBITDA
even on a 10x EV/EBITDA, which is very conservative
you are looking at 1800 Cr m-cap
Eco Recycling Limited (Ecoreco (15-05-2024)
you are looking at sales
but they have a margin for 60%+.
they are targetting 300 Cr of sales with 60% margins, which comes to 180 cr EBITDA
even on a 10x EV/EBITDA, which is very conservative
you are looking at 1800 Cr m-cap
How to analyse Equity Mutual Funds? (15-05-2024)
You’ve made some interesting points. Will try to find out the data for all these metrics, put them in the in the same excel and share the same across.
How to analyse Equity Mutual Funds? (15-05-2024)
You’ve made some interesting points. Will try to find out the data for all these metrics, put them in the in the same excel and share the same across.
IRM Energy – A new kid on the (listed CGD) block (15-05-2024)
Is this a recession proof business?
IRM Energy – A new kid on the (listed CGD) block (15-05-2024)
Is this a recession proof business?
VIP Industries : Luggage (15-05-2024)
Really poor performance and even in concall they ignored some of the key questions. I think safari is going to capture the market share faster than any other brands.
Sundaram Clayton (15-05-2024)
Thank you for the prompt reply. Your detailed insight about the company is helpful.
How to analyse Equity Mutual Funds? (15-05-2024)
Interesting problem to solve!
Most investors look at recent past performance which imo is not the most sensible way of assessing a mf. On the contrary it’s important to know what kind of risks the manager took to deliver the outperformance. Id be happy to collaborate/contribute here. If it’s an active equity fund I’ll want to look at
- Deviation from index (constituents and %). If it’s hugging the index, I’m better off doing passive investing
- Quality of companies (debt levels, score on forensics)
- Trueness to the label (eg many value funds end up buying baap stocks due to peee pressure)
- Long term risk adjusted performance. In the short term, it’s impossible to distinguish between a lucky idiot and a skilful manager
- Performance during bad/bear markets. Personal choice – I’d rather select a fund that outperforms during bad markets.
- Size analysis – size is the enemy of returns. What’s the sweet spot here.