Hi Nikhil,

W.R.T. your thoughts and my response, here is a far better articulation from my favourite Prof. on looking at valuations – the different metrics to apply when buying a stock and later when holding a stock – and when to execute sell decisions. I try to apply this framework to my investing.

http://www.safalniveshak.com/email-exchange-with-sanjay-bakshi-on-valuations/

Have a good weekend.

BR,

Aniket.

Thanks Mehnazfatima For Your Analysis …Yesterday Md Of NIIT Was On Cnbc & Very Bullish on Their Skill Devlopment Area World Wide & They Are Very Confident Under Leadrship Of Mr Patwardhan Company Will Turn Around…

In stock market all time high level doesn’t matter compare to which price u bought. It all depends on situation where you enter into that counter.

As Nifty down from 8300 to 7800 means Nifty P/E it self down from 24 – 22. So market relatively down all the stocks which reach to high valuation and normalize the fact with moderate growth for FY16

Now market is not in good mood to give high valuation for any stock. So its good time to enter and buy qlty stocks for 3-5 yrs horizon. There is no change in fundamental of Premco & it’s business model.

Disc : I enter into emaco at 570 level

Please check my opening post regarding comparision to Vidhi. At this price, it’s a good buy in my view. Stock had held quiet well in recent carnage.

Any guess on the probable valuation of the Engineering business- the gear and the water business? The Company was very optimistic on the call about both the businesses. The Gear business ramp up has been quite slow so far and the water business margins have been low. Except the optimistic future laid down by the Management, the past doesnot give that much confidence. Additionally, the sugar business efficiency in terms of EBIT margins is the lowest among its peers, even the molasses division has the lowest margin. Any views on this would be helpful.