Price to book ratio is trading at around 0.85. It is a deep value opportunity or a value trap? any views? New to investing.
Disc. No holding
Price to book ratio is trading at around 0.85. It is a deep value opportunity or a value trap? any views? New to investing.
Disc. No holding
That’s neither here nor there, no? I had seen this chart which you posted earlier too. It’s good input and makes one think about it further. Of course, as @Chandragupta pointed out, Sumitomo is a diversified conglomerate. They are not that in India. So it’s not an apples-to-apples comparison.
My question was only about your point that was critical of their innovation capabilities. My reading indicates that is not the case and I wanted to be better informed. But since you haven’t shared specific inputs there, I guess we can leave it here.
This is what investors in Japan think about the company ( last 22 years performance of stock). Hope it helps to get a prespective as far as parent company is concerned.
We are at the euphoria stage of the market. You and I have discussed this in out convos. Recent price action is completely out of whack with fundamentals.
What is the future, I am no guru to predict.
As regards to REC/ IREDA / PFC, look at loan growth and NPA to determine relative valuation for long term.
for eg: PFC has recently loaned the Shapoorji group some 15k crores for repaying old loans. Does it make sense. Is it part of their mandate.
Similarly, REC has started funding infra projects. Do they have clear understanding of the relative pitfalls. Infra projects in India are almost always delayed. Have they priced the risk.
I hold REC bought at current prices having but am doing so taking into account 15-20% dips and long term holding. If your outlook is shorter, maybe time is to take out profits.
Not much movement on the counter. Is there any positive news coming for this stock? Has there been any update on hotel sale/ quicker opening of screens?
There is only one new AI named Indifilin in this report…that’s what I was mentioning ( one molecule in last 30 years)…rest are just code names. Looking at their past success ratio, I don’t think they would succeed in bringing 2nd or 3rd new AI , at least in next 10 years.
And ,also humbly speaking, I would not like to be discuss further about this company. For me it is cyclical generic company where parent is struggling and has a bad track record of last 1-2 decades. Hence would like to stay away as don’t want to waste more time on this.
Thanks for the detailed answers. Appreciate it !
I understand the +ves with this co., their guided growth, operating leverage benefits and all.
However, the key is to understand risks that lurk ahead if one chooses to invest at the current price.
I am still wondering:
*The major concern for me is: Are their P&L numbers genuine or inflated?
If the mgmt. can answer why the CFOs are consistently hugely negative & when can we expect to see +ve numbers there, that will help.
Everything from return ratios, fundamentals to valuations seems good. My only concerns are the lack of cashflows, growing receivables, and CRISIL’s “Issuer not cooperating” rating. I understand that almost 40% of the business comes from govt. which maybe the reason for subdued cashflows and rising receivables. But what about crisis report? Also, I read @Naval said somewhere in the thread that some issues going on within the management.
Can anyone provide better clarity?
Disc. not invested. studying
Hindustan Copper is likely to benefit from the shift toward green energy. Copper is also used in making EV components. The company has shown good profit growth. The price is not currently at its all time high. Adani and Hindalco are making investment.
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