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V Guard

Discussion in 'Introductions' started by deepmukherjee123, Nov 22, 2017.

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  1. deepmukherjee123

    deepmukherjee123 Member

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    Hello sir V guard everything is right they have a good net profit but why there is so sudden low in EPS?
     
    deepmukherjee123, Nov 22, 2017
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  2. shabbir

    shabbir Administrator Staff Member

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    The decrease in EPS from 35.70 to 3.57 is because of the split of stock 10:1. I identified this stock around 200 levels 5 years back. See this thread - https://www.diytechnicalanalysis.com/community/threads/v-guard-can-be-a-good-play.98/

    The price is now 200 but in reality it is 2k if you consider the split.
     
    shabbir, Nov 22, 2017
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  3. manickarajan

    manickarajan Responder

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    manickarajan, Nov 23, 2017
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  4. bnnarayana

    bnnarayana Contributor

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    bnnarayana, Nov 24, 2017
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  5. shabbir

    shabbir Administrator Staff Member

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    Agree.
     
    shabbir, Nov 24, 2017
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  6. bhat64

    bhat64 Apprentice

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    Apart from valuation for me except their stabiliser business I don’t see a moat in their other products..they own wonderla holidays a moat business with high entry barriers but there high capex and low return ratios are seen..Shabbir would you buy wonderla? I don’t understand this business but seems like a strong moat


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    bhat64, Nov 30, 2017
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  7. shabbir

    shabbir Administrator Staff Member

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    I am not a fan of high capex business often because in the information age forward, such high capex business are always at a risk and often not scalable without big debts
     
    shabbir, Nov 30, 2017
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  8. bhat64

    bhat64 Apprentice

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    Shabbir please share how to know if a business is high capex. What are the quantitative parameters you look at to determine the same


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    bhat64, Dec 25, 2017
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  9. shabbir

    shabbir Administrator Staff Member

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    You will know based on certain sectors. Real Estate, Infrastructure, Power Generation. ROCE can be a good parameter and companies with high capex business will have comparitively low ROCE.
     
    shabbir, Dec 27, 2017
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