Share | Market Cap (INR Cr) | TTM P/E | P/E of 5 Year Average EPS | P/E of 10 Year Average EPS |
---|---|---|---|---|
Nestle | 28432 | 42.5 | 54.8 | 87.6 |
Dabur | 18140 | 36 | 52.6 | 80.6 |
Colgate | 11550 | 25.5 | 36.8 | 68.1 |
Marico | 7595 | 32.8 | 48.1 | 71 |
Asian Paints | 24135 | 32.4 | 59 | 88.9 |
I have to remind investors here about the valuation of companies with a lot of enthusiasm at the peak of the Sensex level in January 2008. Almost all companies are appearing near the bubble territory. At the bottom in April 2003/2004, following were the valuations:
* bottomed in April 2004 | |||
Share | Market Cap (INR Cr) | TTM P/E | P/E of 5 Year Average EPS |
---|---|---|---|
Nestle* | 4821 | 18.32 | 28.2 |
Dabur | 1055 | 11.6 | 14.6 |
Colgate* | 1630 | 18.4 | 25.6 |
Asian Paints | 2085 | 15 | 19.85 |
Be cautious!!!
Buying a neglected and therefore undervalued issue for profit generally proves a protracted and patience-trying experience. And selling short a too popular and therefore overvalued issue is apt to be a test not only of one’s courage and stamina but also of the depth of one’s pocketbook. - Benjamin Graham