The 30W EMA is 25% from current price for Polycab. If someone is on a 2x on Polycab that means you would lose half your gains waiting for confirmation.
Additionally at the start of a bull run, market is more forgiving of misses on growth. But right now, even an average quarter is being severely punished (e.g., Neuland Labs). At 60 PE, wire companies need to show 30-40% growth which is a hard task on this base. So why put 30% just in cables and wires and not diversify across the bucket.
30% allocation to 60PE stocks which are well discovered and can only compund 15-20% seems extremely risky
Disclaimer: Invested in Polycab from 650 levels (started trimming post Q4 results to get allocation below 8%)
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