Hi.
Q1.
One stock which you had mentioned: Cartrade Tech. Where do you stand regarding it?
I have been looking into it lately, and things are found compelling are:
- its revenues come from PaaS, its an asset light model
- market leader in online car sales, be it by auction, P2P, B2C, 2W, 4W
- Has a strong cash pile. What remains to be seen is whether the management is good at allocation.
- Its Unique Visitor growth is 47% YoY
This bodes well. I find it v.v.difficult to decide the buying range. Hence, I am forced to go by chart patterns alone, trust the market. It has consolidated for past 7 months, right through the rate hikes. That also indicates that the froth, post IPO, has settled.
However, it will be a while before the stock price starts going up. I feel it might be a good idea, to wait for a 52W high to break for entry, and tide out the time correction.
What is your stand on CarTrade Tech?
Q2: Nykaa
There is hue and cry aroud Nykaa being 1600 PE. Well, even HuL would be 1600 PE if it spent most of its earnings on future growth: brand acquisition, advertisement, kiosks, stores, personell etc. But, it doesnt do it, cuz it does not have a wide uncaptured market share and competition at heels.
Nykaa is debt free, profitable (by a whisker), has leadership position, and a good ethical management, a disruptor and here to stay. This makes it an ideal candidate for me to invest.
Just that, valuation needs to be put to perspective.
Pls throw some light on this as well.
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