It is a good time to build a portfolio with bluechips trading at 10-12 times price to earnings.

"At 8,000 or so, the market was very pessimistic. That was an opportunity to buy and invest without looking at anything. Even now, I don’t think valuations are anything to be worried about if one is a long-term investor with 3-4 years horizon. I think at 10-11-12 P/E multiple for the broader market and more like 8-10-12 times for individual companies are times to build your portfolio with bluechips." On Q4 earnings, numbers are on expected lines with some positive surprises

Raamdeo Agrawal, Director and Co-Founder, Motilal Oswal Financial Services in India  SAYS “ I think this rally has been quite extended. I am very surprised in terms of its strength and longevity. But my sense is that one big event which the market is seeing is the installation of a new government. Around that time, we should see whether the market will peak out at 11,000-12,000-13,000. So, one round of rally probably will be over. But a lot depends on behaviour of foreign Institutional Investors nowadays”

I don’t think valuations are extended at all. My sense is that at about 8,000 or so the market was very pessimistic and that was an opportunity to buy and invest without looking anything at all. But even now, I don’t think valuations are anything to be worried about if one is a long-term investor with 3-4 years profile. But if one wants to time it for 6-8 months, then these rallies of 3,000-4,000 points will make a lot of difference. But the longer-term, I think at 10-11-12 P/E multiple for the broader market and more like 8-10-12 times for individual companies are times to build your portfolio with bluechips.

Cipla has been a very consistent performer. It is in the limelight in terms of current opportunities. I think at 23-24 times next year, Cipla is not among the cheapest stocks but it is a consistent, highly profitable, well-managed company. So, you will get 20-25% whatever the earnings growth is. That would be the potential for the company to make money.

we have had enough of it in the last six-eight months, one year. I think this is a time to seriously invest because at 9-10-11 times PE multiple, I do not think one should bother too much about what’s happening globally. We are doing reasonably well. We are talking about 4-6-7% kind of growth and earnings are very attractive, stable

REF:1

20 comments

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