about page, i agree its not a buy at this level. for some one who has been holding from a lower levels, i dont see any reason to switch. some points. i will keep it simple since most of us know page very well.
1. no meaningful competition.
2. some of the other names like bluedart,Gillette, jubilant foodwork etc trading at 100 plus pe. this is despite repeated under performance in several quarters. HUL with flat growth is trading at 50 pe. what it implies is that one can get out with minimal damage even in the event of bad result. ( page had its first bad (relatively ) quarter in q1 and the price didn’t fall much.
3. in this overvalued market (even after this correction), where are other compelling buys in the high quality space? ( business with predictable earnings, scalability etc)
4. pays 40% of net profit (consistently) dividend. usually high growers dont give that kind of dividend.
5. i have seen tons of companies/instances where reported eps growth is a lot higher than sales growth. you can call it operating leverage, margin expansion or whatever. but this cant go on. in case of page, the profit growth rate has always been equal (more or less) to sales growth. this is one thing i like about page.
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