I dont track the fundamentals of either Pennar Inds or Capacite infra. Charts of both companies look interesting. They are not in my watchlist.
RIIL has given a multi year breakout above 1100-1200. Stock price is at almost a 15 year high. But I have never managed to understand on what basis the stock keeps going up and down. Fundamentals wise a quick glance at the 10 year results on screener does not provide a very encouraging picture.
In the final phases of a bull markets stocks often go up, and go up a lot purely based on stories and narratives.
Our job as investors is to make sure we know what we are buying and why we are buying. This view has got nothing to do with RIIL in particular. Who knows it might go up a lot from here. But if I dont have any fundamental conviction, then it would be difficult for me to hold on to it if it starts correcting.
The biggest mistakes are committed in roaring bull markets and they often turn out to be the most expensive. Hence while investing particularly during frothy bull markets we have to be very sure about what we are buying.
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