Ishu brother - since I started investing just before COVID and you just after COVID, I am little more experienced But your thesis/reason for buying a stock is much better than myself, hence I am curious to know your view…
With respect to stocks in same sector for example:
ICICI Bank V/s HDFC Bank: HDFC Limited will be merged into HDFC Bank. As per analysts this will bring lot of synergy and cost reduction etc over long term. Hence could HDFC be a better bet than ICICI? OR ICICI is right now is growing faster than HDFC. I feel over a long period of time both of the banks will grow more or less equally - so why not select one rather than both?
KEI V/s V-guard: (as per screener data)
KEI
PE: 30.8 | ROCE: 23.8% | RoE: 19.2% | DE: 0.17% | OPM%: 10-11%
Sales CAGR 10Y - 13%, 5Y - 17%, 3Y - 11%
Proft CAGR 10Y - 31%, 5Y - 32%, 3Y - 27%
V-Guard
PE: 39 | RoCE 21.8% | RoE 17.4% | DE 0% | OPM: 9-11%
Sales CAGR 10Y - 14%, 5Y - 11%, 3Y - 11%
Proft CAGR 10Y - 16%, 5Y - 9%, 3Y - 11%
KEI Better RoCE/RoE. Far better Profit Growth. V-Guard faces very high competition in FMEG segment where KEI too is entering. So why not invest in KEI only?
In FMCG you have HUL, Marico, Tata Consumer and there is DMART too. I feel DMART is a smarter bet than FMCG’s as growth in HUL, Marico, or TATA consumer indirectly benefit DMART. So, if given a choice, I will have only DMART.
Likewise Wipro V/s KPIT where KPIT is more focused into Automobile but Wipro is a laggard even among large cap IT stocks. Why don’t sell Wipro and put that into KPIT only?
Lastly, instead of IEX, Tata Power, SBI Card, Metropolis, AngelOne, L&T, Deepak Nitrite - could you buy a consumption discretionary theme like QSR or Metro Brands or Manyawar or TITAN etc which I feel have high growth prospect over a long term.
You have a long way ahead and I wish you all the best
Subscribe To Our Free Newsletter |