What we learn from history is that we don’t learn from history. It reaffirms the short term institutional derby, the way some stocks lost 50% ground in 10 trading days.
Some of the stocks that I have mentioned, and obligated to update on.
Relaxo: Doubly horrible results, only 13% growth in topline, bottoline was expected. Final product prices have not been raised and cost not passed on. This should decimate the huge unorganised market in north India, good for long term, but who cares about long term. Wont add right now.
Photoquip: Raw materials / Oil seems to have eaten into all the good companies this quarter including Hawkins Cooker and Gillette. Nice topline growth though atleast. Still a Buy, can be added.
Cera Sanitaryware: Came out unscathed with 30%+ growth in revenues and PAT. I am not exactly sure how raw materials did not affect it, possibly they had inventory or prior contracts. Interest rate rise, degrowth of new housing starts can affect it in short run.
PSU Banks offering 3-4% yields with low NPAs can be considered for safety. Some commodity stocks showing high growth this quarter both topline and bottomline can be bought for opportunistic trade for next 3-6 months of upwards commodity price cycle. This year looks more like sideways for investors from index perspective. There can be excellent trading opportunities though.
I am positive on India story as always and where there is growth, crowd must come.
Brilliant analogy to extrapolation on Page 8 of this PDF
How one bad quarter or great quarter is projected far into future in minds and hearts of investors and reflected in prices.