Absolutely no issues related to product demand. So whatever manufactured are sold.
But what is the margin and what is the pricing power of company (due to anti dumping issue) to generate profits and ROE. Looking at financials, depreciation reported by BR is high in past
few quarters and that is hitting bottom line.
As a long term investor, how do we analyse such companies.
Financials perspective, if the bottom line hit is only due to depreciation, should we ignore high PE valuations ? In the long term, assuming, Chinese companies cannot keep dumping products at a sustainable pace, so pricing power will eventually happen. At the same time, competition due to domestic manufacturers are only increasing, so that may offset any advantage company had.
Net net, I am trying to get inputs on how Market view these companies and decide to put money.
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