@Aakash444 – The goal has been to play the capex cycle indirectly via leaders that could double earnings in 3 – 4 years (have been tracking it for sometime). The changes in the bearing (shift to forging, EV/Hybrid, etc) set up Rolex in an interesting position. There was a research report about the company sometime back that should give you more insights – LINK
The valuation is debatable and depends on the earnings one is looking at: TTM v/s future. At present, the stock discourages me from adding – there are reasons why it is amongst the lower portfolio allocations. Let’s see when and how the EU recovery pans out.
The current buy is around ~1900/1950. The previous was slightly higher. I exited expecting some correction and was hoping to re-enter around 1600-ish levels but it didn’t go as per expectation. Re-entered with a small allocation. I rarely have been able to hold high valuations for long periods, so maybe I will exit again when needed.
Disclaimer: I am not a SEBI registered advisor or analyst. This is my personal view and not a recommendation. I am often wrong and do change my views without informing anyone. Please consult your financial advisor.
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