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‘Growth Investing’ Vs ‘Growth Revival’ – Which style to follow?

Posted by | Indian Markets, Investing Framework, Stocks | No Comments

Style 1: Growth Investing Growth stocks are companies which are consistently and predictably growing at supernormal rates and given the visibility in their earnings trajectory, the market keeps re-rating them to levels which look obscenely high when one looks at price-earnings multiple of trailing twelve months. But proponents of this approach chose to ignore trailing multiple and, considering growth potential, feel comfortable with multiple it would be at two or three years out. Assume Stock X trades at Rs 100 and earned Re 1 per share in FY17 implying a price to earnings ratio of 100 times. If earnings grow at 40% CAGR the forward price to earnings would keep contracting as follows:  FY17A FY18E FY19E FY20E FY21E FY22E EPS @ 40% CAGR 1 1.40 1.96 2.74 3.84 5.37 Price-Earning …

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What my neighbourhood jockey dealer has to say about the brand

Posted by | Stocks | 7 Comments

Earlier jockey was into premium range only, now its available at all price points Indian brands like Rupa, Euro would cost you 90-100 for an undi whereas you can get a Jockey at 120 There are five separate distributors for different segments/range So, out of the 6 working days in a week, five days you have a different Jockey distributor sitting in your shop and taking order. You order today and its delivered the next morning Both distributors and dealers get credit of 15-30 days, however PDCs are given at the time of ordering. 2% discount for cash payment Dealers are given 20% margin and mostly sell on MRP, its unlikely you would get discounts anymore Very happy with company and the brand, value-for-money products – Good quality stuff with lots of variety Company over time has built …

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