This here is in addition and continuation to my doubts on the company valuation above. Anyone who isnt familiar to my doibts can give the last few replies a quick reading.
In short, i asked on what logical grounds does such a valuation for Usha Martin makes sense. The Valuations Growth exceeds the EPS growth. Exact numbers shared above.
Now, coming to today or 12the September movement. The whole market being down led us to corrections in almost every name. I am sure everyone’s noticed.
But heres the thing, At one point during the day Usha Martin opened at 371 and the lowest it went was about 301. This is about a 17% Correction in valuations.
Not 2 or 3 or 5%, there was a reason for investors to think, at a moment, that it should be valued 17% less, and this happened on a daily time frame, not a week not a month.
So, are these valuations that many names defended when i raised my doubts, they do not seem to be as solid or should i say, not what market participants think to be. Market participant that can move the valuations like they did yesterday.
It can recover, but my point is not about recovery but simply, how fragile are the valuations that it made sense that the company should be valued at 17% Less, and it happening on a Days duration adds to the concern.
I am not invested, but I would like to be. The future COULD be good. But thats the future, we should be sure whether where we stand in terms of valuations is a sure footing or not to even start thinking of future growth.
Future looked good for individuals in Dreamfolks, but the valuations did not make sense.
Also, the nature of the forum and opinions should add to caution cause even the ones defending can divest during such corrections without the need to share the update on the forum OR simply sharing the update days or weeks later.
My doubt is about company valuations, i believe them to be too good, and seeing the near 17% Correction, which stopped at just 4%, yesterday adds to my concerns.
Companies dont just correct 17%. This happening for even a duration of few minutes should make us all aware.
I suggest every participant here, especially the ones who are looking to enter the company to Please Be Careful.
Great day.
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