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I must admit that our call on TVS has gone wrong consistently, because from Rs 270 onwards, we kept a sell rating on TVS,” said Daljeet Singh Kohli of IndiaNiveshBSE -0.12 %.
The stock was trading at Rs 535 on Tuesday.
Kohli said his thesis for the ‘sell’ rating was based on the fact that the stock was trading at twice the multiple of Hero Honda and Bajaj, whereas margin profile was half of theirs. Even return ratios were half of theirs. “Going by valuation theory and on pure fundamentals, it does not make sense to go for a company that is making half the margins to trade at double the valuation of its peer,” Kohli said.
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Question: of what use is your fundamental analysis if you cannot make money?
Read more at: http://economictimes.indiatimes.com/articleshowsp/59013945.cms
I must admit that our call on TVS has gone wrong consistently, because from Rs 270 onwards, we kept a sell rating on TVS,” said Daljeet Singh Kohli of IndiaNiveshBSE -0.12 %.
The stock was trading at Rs 535 on Tuesday.
Kohli said his thesis for the ‘sell’ rating was based on the fact that the stock was trading at twice the multiple of Hero Honda and Bajaj, whereas margin profile was half of theirs. Even return ratios were half of theirs. “Going by valuation theory and on pure fundamentals, it does not make sense to go for a company that is making half the margins to trade at double the valuation of its peer,” Kohli said.
<<<
Question: of what use is your fundamental analysis if you cannot make money?
Read more at: http://economictimes.indiatimes.com/articleshowsp/59013945.cms
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