All know quality stock’s valuation is expensive but they can be expensive only to a certain extent compared to market valuation.
The assumption that HUL was always super expensive is wrong. It was not super expensive before 2017.It was trading at 40 P/E on an average) most of the time between 2012-2017.
There is lot of difference between 80 PE and 30 PE for a 12% EPS CAGR when nifty is always around 22 PE with 10% EPS CAGR.
The same HUL was trading at 30PE for a decade between 2002-2011 but no so-called matured growth investor came forward to buy as they were busy speculating on infra and telecom stocks. Hence no demand for HUL stock and never went up to even 40PE for a decade.
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