KIE analysis sounds fair.
In times like these, Its good to be defensive and be extremely picky about the small cap stocks you keep in your portfolio. Regardless of the quality of the stock, its valuation (low/high PE), there will be draw downs, but as long as there’s conviction in business model, one can use it as an opportunity and keep adding. There’s a time to take risks and a time to be defensive, one can’t always allocate 75% PF to small caps, its okay to rebalance.
P/E ratios are not particularly useful for cyclical companies, look at the business momentum and try to think 2-3 quarters ahead. During a crash, markets won’t spare low P/E companies either.
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