Penning down aftermath of exiting bector. I averaged bector at around 290rs buy price and bector performed very well and is close to 900 now. I exited bector between 750-850 and while I try to reason this with good opportunities available in Pharma and chemicals, some parts in banking sector and IT, all the while bector valuation continuing to increase , I feel it was a wrong decision with very long term view. While it’s selling at premium, I have seen some companies like Varun beverages, polycab justifying their premium and providing solid growth and while one can do discounted cash flow, sometimes , the effect of improving margin and sales growth and product portfolio expansion can have great effect on a company which no one can predict, especially if it can sustain for even 2-3 years of company life. If fund houses upgrade valuation on these grounds, people can sit on mouthwatering profits and understand true meaning of compounding. While there’s such a possibility in bector and I may be missing it having no plans to reenter, hoping this message serves relieving dilemma amongst existing investors and serves me as a decision to critique sometime in the future.
Disc : Completely exited.
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