Hi Chirag, Please don’t take “Junk” as offensive, for me Junk are even good companies trading at exorbitant valuations, volatile margins, drop is sales is most dangerous.
Polyplex margins are volatile, sales have dropped, its a dull business which is good however need to dig into further if valuations are good.
SBI cards looks expensive to me, stand alone card business will never get fancy, last 4 year performance is pathetic, NPA issues are most severe in credit card due to unsecured nature. IDFC offers revolving credit at much lesser rate.
Tanla looks promising.
Affle and rategain are in expensive category, new investment is not warranted, dont confuse with Industry PE, PE for bull market and bear markets are different, a 80 PE valuation will be justified in a roaring bull market and for same business even 40 PE valuations will look expensive:joy:
, just see chart of Dmart.
I will advise to play caution. Better to be in cash 50%. All market is heated up, look at stock level, dig deep and than take a call. End of day, capital preservation is most important all the time
PSU banks are cheaper than Pvt banks , corporate governance concerns are over as Modi will return to power. Also due to lesser fiscal deficit, they will enjoy large margins as cost of fund will go down.
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