IPL is rerating valuation of these IPL owners. Looking at current market price Deccan has more value to be realised from IPL franchise.
Market cap of 1100 Cr , P/E of 6 and Dividend yield of 5.5%. Yes , I am talking about SRF. World's second biggest producer of nylon chord used in Tyres.
3 Year CAGR at 25% and debt to equity at 1.
Looks attractive to me , any ideas ?
About rahul das
Market cap to sales can be one of the good way to find some undervalued stocks. While earning is more critical factor, some companies put more emphasis on growth instead of margins and profits that brings more revenue but less profits. It doesn't mean all these are great stocks ..
Traditionally companies in auto sector tends to have high sales because cars are big ticket items . or metal companies. But uptrend in market have crushed those ratios.
What type of investor are you ? Growth or Value ? Or just an speculator. I think investing has only one type that is Value investing. That means you buy stocks that you think are cheap compared to their real intrinsic value. Or Buy Rs 1 worth of gold for 50 cents.
How to find what is value of stocks ? If you look at a stable company with good brand and constant revenue stream like Hidustan Lever then you look at p/e and balance sheet .
But if we are looking at companies still on growth path, different matrices needs to be applied. Things PEG etc.
Power grid trading at 6 month low today on a high market. A great opporunity for value investor looking for a safe bet in power sector.
CMP : 100.35
Expected return in 1 year 20% on conservative basis. Stock is trading at p/e of 23 compared to high p/e of 33 for other power companies.