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Discussion in 'Technical Analysis' started by mcsaxena, Mar 16, 2018.

  1. mcsaxena

    mcsaxena Member

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    Is it advisable to invest in VIP Industries and Marico at current level ? Please suggest.

    Regards
    Manish

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    mcsaxena, Mar 16, 2018
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  2. mcsaxena

    mcsaxena Member

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    mcsaxena, Mar 18, 2018
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  3. nirajshah

    nirajshah Champion

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    Marico definitely. Business is doing awesome but stock has runup as well and so taking a breather. Should be accumulated

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    nirajshah, Mar 18, 2018
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  4. shabbir

    shabbir Administrator Staff Member

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    I will wait for some more correction as I expect good price being available very soon for both the stock. If you don't have the patience to wait, start accumulating on down days.
     
    shabbir, Mar 20, 2018
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  5. mcsaxena

    mcsaxena Member

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    Ok, thanks Shabbir bhai, we will definitely wait for some time.




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    mcsaxena, Mar 20, 2018
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  6. chaitanya_mella

    chaitanya_mella Contributor

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    Owing to market corrections or industry specific conditions?
     
    chaitanya_mella, Mar 20, 2018
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  7. shabbir

    shabbir Administrator Staff Member

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    Both but more of a market correction.
     
    shabbir, Mar 21, 2018
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  8. chaitanya_mella

    chaitanya_mella Contributor

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    Could you throw some light on the industry or company specific criteria?


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    chaitanya_mella, Mar 21, 2018
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  9. shabbir

    shabbir Administrator Staff Member

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    Both the stocks are high PE stocks but if you check the 5-Years Price to Earnings of both of them on ValueResearchOnline, you will find that they are still higher than the median. So I expect some more correction in this phase of market correction. I can be wrong as well but this is what I feel.
     
    shabbir, Mar 22, 2018
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  10. chaitanya_mella

    chaitanya_mella Contributor

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    But if you look at the significant rise in disposable incomes most FMCG companies are going to see a rise increase in earnings so won't the shares be likely to continue to command a premium?
     
    chaitanya_mella, Mar 22, 2018
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  11. nirajshah

    nirajshah Champion

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    Yes they should but PE expansion can't happen in high PE stock.

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    nirajshah, Mar 22, 2018
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  12. chaitanya_mella

    chaitanya_mella Contributor

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    Right. The PE then tends to stabilize if earnings do really catch up.
     
    chaitanya_mella, Mar 22, 2018
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