Hi Hitesh
Sorry for unsolicited advise from my side. But hope this helps as I was in similar situations as you in the past
It’s okay if you the companies you evaluate to be good. For all I know the cos you’ve mentioined are probably good. We may think we have good investment opportunities if we don’t look at enough cos. You’ve mentioined 3 cos which you found good. But, if you look at 10 more cos you will find some of them are better than others. Once you have enough research and have your own estimate you may find some of these to give 15% CAGR over next 2-3 years and 25% for some others. Once you find the cos with 25% CAGR expectations the one which looked good earlier may not seem as good as earlier.
Please look at the following factors while evaluating
- Are the earnings cyclical ? Am I able to predict with fair degree of confidence ?
- How much is the downside risk from CMP ? Look in the context of historical valuations (and also technicals)
- Does this co seem like a good investment when compared to other cos in my PF or tracking universe ?
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