investment strategy: Sandip Sabharwal won’t buy into Havells, Polycab, KEI. Here’s why
Sandip Sabharwal, asksandipsabharwal.com, says they do not own any of those stocks and he is not looking to buy also because the entire re-rating in wires and cables was beyond his understanding. He feels Valuations will come down to reasonable levels at some stage, but given the commodity nature of the business, he does not like these businesses so much.
Sabharwal also says that the bull market has shifted investor perception about what stock valuation means to new investors. About two years ago most investors accepted a stock price-to-earnings ratio of 12 to 15 for midcap stocks but rarely exceeded 20 PE when purchasing stocks. Since the market corrected, many midcap as well as smallcap companies currently maintain PE ratios at 50-60…
