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Hi @Surender

Let me address the larger question here applicable to me personally.

I’m inherently a risk taker with super concentrated positions & market is a wrong place for such persons. It consumes people and may even lead to the brink financially – particularly I’m a full time market guy with no job. So, there should be a process in place & stick to it come what may. I did not follow to my own rules & traded in & out of “hold only” stocks. But, from last year, I have been very strict with the process.

With the above in mind, I need to have some stocks whose management is 100% integrity people (talent comes later). So, my go to stocks are

DMart
Page
Kotak
Eicher
Nestle
Infosys

My approach is, 10 plus years of money to live my family life will be in all or few of the above stocks only at any point of time. Money will be rotated inside these stocks only.

Now specific to DMart, my belief is DMart business strength, runway for growth, growth rate, competitive positioning is better than Page & from my experience 25% premium can be given to DMart over Page valuations. This premium in the market ranged from 25-100% depending on the stage of bull market. When growth stocks are on full rage, DMart was at almost 100% premium (October, 2021). Now, it’s 35% around. So, if page falls 10%, Dmart falls 13%, vice versa – assuming all the business characteristics remain same. If there is a water fall market correction, no low can be low – all bets are off. The current valuation of DMart is at 2018 lows (FED rates hikes top of that cycle). Now, if the rate cycle goes bonkers in India/ USA then high valuation stocks may be hit further but my opinion is Dmart will consolidate around 3500 as earnings will improve 20% at least with passing time.

DMart has 300 stores & over next 15-20 years, it can be 2000 stores & even the management themselves for the first time said in analyst call that 1500 stores is something they can do! Now, that’s a fine confirmation. LONGEVITY of growth plays UTMOST important than RATE of growth.

So basically, my strong conviction is if we prolong the timeframe, the mistakes of valuations will be forgiven for 1% of the stocks only, rest 99% are not worth this approach (unless some one bought Dmart at 5900 & Page at 54000 & repeat this mistake in every cycle). At least that much knowledge should be there not to buy a stock at 150 PE (that’s FOMO, speculation).