Tuesday, November 30, 2010

Branded Apparel Sector - Part 1

The textile sector in India is one of the biggest employment generators. There are several different industries that are part of a chain of processes involved in creating the final product, an apparel. These include

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Wednesday, November 24, 2010

Sometimes number two (or even five) is better than number one

This is a long post with some examples. This post is to highlight the fact that it is not always number one in any particular industry, either in terms of sales or profits, who is the best. There might be special situations when some company down the rank in terms of sales and profits doing better than the leaders in its industry.

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Tuesday, November 23, 2010

Sensex Nifty EPS after Q2FY11

Sensex ended at 19691.84 on 23rd November with P/E at 22.47. This gives Sensex EPS of 876.36. Nifty ended at 6010 on 22nd November with P/E at 23.98. This gives Nifty EPS of 250.62. This compares with Sensex EPS of 781.98 and Nifty EPS of 230.38 after Q2FY10. Thus Sensex EPS has increased by 12.07% and Nifty EPS by 8.78%. If the first two quarter numbers are anything to go by, the Sensex EPS at the end of FY11 should be 12% higher than last year's 828.5, i.e. somewhere around 930 and Nifty EPS should be 8.78% higher than last year's 239.64, i.e. around 260. Compare this with analyst's estimates of 1100 by Rakesh J, Motilal Oswal and Credit Suisse. This requires EPS growth of 25.52% in just two quarters, i.e. 51% compounded annually. All the best to analysts.
It is contrary to human nature for investors to take extreme precautions against future collapse when current conditions make for optimism. - Benjamin Graham

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