Being a value investor, I have not ventured into buying Growth stocks in the past 4-6 years. Whenever I have bought Growth stocks at fair or high valuations, have received not so optimum returns and have moved back to value investing.

MOST is good at researching into growth stocks, and do give recommendations at high valuations but some of those in the past have proven quite not so good. Some of the highly valued stocks in IT such as TechM, HCL Tech have corrected once their growth suddenly drops from above normal to below normal, so one has to be very cautious if you are paying for PE of 50 and above.

My assessment is that, competition is increasing in all sectors and some of the decent 30%-35% growth stories are seen suffering today with modest 20-25% growth and have not sustained high 50+ PE valuations for long time. It looks tough that, 35% growth will be sustained by PAGE for next 8-10 years to justify such high valuations. Being a cautious investor, I may sound pessimistic, but Mr. Market sometimes in sad mood can bring down valuations of strong business to realistic levels.

samirhuli,

Regarding pharma stocks I am not too sure at this stage which co from among the ones u mentioned is going to create the max wealth. But most of the US facing pharma companies who dont have regulatory hurdles are sitting pretty and are on track to make decent gains in next few years.

Regarding your comments about missing the bus, in case of the stock you are tracking or the girl you are wooing, its never too late to take the plunge.

In investing,

1. Sometimes, apart from theoretical knowledge, logic and common sense will be of great help.
2. Sometimes, microscopic view does not give broader picture, you will only see electrons/protons rotating around nucleus, take a lift and see from 10th floor, you might see a beautiful picture.

This is not pointed towards anyone, just my view based on my experience.

Thanks. Will wait to educate myself on if PE can/should be used or not. At this point in time I am not equipped enough to be able to compare between both and hence would refrain from talking about pros and cons of both approaches in relative terms.

Personally, I just try to follow a basic thing which is valuation approach for a firm should be driven by where the value is created from or where the value lies within the firm. And hence have been able to reconcile with book value (alongwith other associated stuff as stated above) as a good approach to value banks or NBFCs.

Also believe that such theories need to deliberated much in detail with appropriate back testing etc.,. as well. Don't think I have the time to deliberate that much but none the less will try to read what I can find on this

Few pointers from my talk with the CS of NCL Industries

1. Last quarter capacity utilisation was 72%
2. Demand is picking up and they are having good traction
3. NCL Homes is a company owned by one of the directors of the company.
4. As such no business pact with NCL homes
5. NCL Homes can buy cement from any company it wants to.
6. NCDs are likely to be issued soon.
   7.Capacity expansion is needed
7. Last 3 years company wasn't doing well but now things have improved and performance is going to get better.

He was resistant to divulge any info for current quarter.

Regards
Sri Krishna Bhutra