Invested today at Rs 263 for which I had to overcome a physiological barrier of bulk of my earlier investment at an effective price of Rs 33. My reasons are
1. Asset light nature of business . 2. Value of brand. 3. Return of capital is being maintained at a satisfactory level of 25% plus .4 . The company has been establishing new plants and aquiring companies to expand and introduce new products .I believe these measures are likely to have a positive impact on sales and profits over next two years .5. The earlier disastrous experience of the company in aquiring Sylvania Europe is likely to temper any reckless approach in these proposed expansions .Once bitten twice shy !
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