Problem with companies in the list, the high ROE is priced in. All of these stocks trade at a high valuation across all parameters. We need to look for uncertainties/external issues/technical corrections that result in small downmoves and accumulate these shares (For ex, Titan went down till 200 after the curbs on Gold imports.while the policy change is a clear -ve for Titan, Market overreacted to the news). Similarly Zydus Wellness one bad quarter about a yr back and the stock was punished. We need to wait for such opportunities.
All of these are secular growth stories/moat provided by brand strength, have decent management, so market will always tend overvalue such stocks particularly during uncertain macro scenarios.
Problem with companies in the list, the high ROE is priced in. All of these stocks trade at a high valuation across all parameters. We need to look for uncertainties/external issues/technical corrections that result in small downmoves and accumulate these shares (For ex, Titan went down till 200 after the curbs on Gold imports.while the policy change is a clear -ve for Titan, Market overreacted to the news). Similarly Zydus Wellness one bad quarter about a yr back and the stock was punished. We need to wait for such opportunities.
ReplyDeleteAll of these are secular growth stories/moat provided by brand strength, have decent management, so market will always tend overvalue such stocks particularly during uncertain macro scenarios.
Cheers,
Ram