One of the exit strategy is the whole sector doing unwell or the utilisation capacity is 100% and sales are flat and management won’t do capex…
But that seems highly unlikely.Cables and wires are proxy to Railways, Industries,power sectors till next 10 years.
That jump is due to listing of the shares. Pre-listing PE should not be looked at.
One issue I find in this industry is that it is a very low entry barrier industry which can face unorganised competition as I know of many unlisted players that operate at a smaller scale, when these co-working spaces earn higher returns on capital more competition will get attracted to kind of replicate their model of giving value added features such as high speed internet, cafe, security guards etc.
On 5th December 2023 (which was demerger date) share price of Borosil Ltd reduced from 445 to 375.
So you have paid around 70rs for Borosil Scientific.
Even if your cost of Borosil Scientific is showing as 0 but you have actually paid around 70rs which is deducted from your Borosil Ltd on 5th December.
One view of such a scenario :
Other scenarios welcome.
You are majorly paying for:
As far as exit criteria is concerned, I have not came across any mathematical framework that would provide a timely exit. Classic example would be that of Asian Paints which has always commanded premium inspite of sluggish growth in the recent years.
The only exit criteria that I consider as a reasonably well contoured is stage analysis and thus, be on the look out for movement from stage 2 to 3, implemented via a trailing stop loss adjusted on a weekly basis. Basis for exit criteria is the real life experience of fundamentals always trailing technicals. Experienced this phenomenon in Gujarat Fluorochemicals, Alkyl Amines and IEX.
You are majorly paying for:
As far as exit criteria is concerned, I have not came across any mathematical framework that would provide a timely exit. Classic example would be that of Asian Paints which has always commanded premium inspite of sluggish growth in the recent years.
The only exit criteria that I consider as a reasonably well contoured is stage analysis and thus, be on the look out for movement from stage 2 to 3, implemented via a trailing stop loss adjusted on a weekly basis. Basis for exit criteria is the real life experience of fundamentals always trailing technicals. Experienced this phenomenon in Gujarat Fluorochemicals, Alkyl Amines and IEX.
Hello,
Just adding my 2 cents to the community on what businesses I’m studying currently and interested in adding to my satellite portfolio with 20%+ growth anticipation. Will really appreciate the views of the community:
Will love opinions of the community members.