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Foreign institutional investors (FIIs) are showing increased interest in investing in India, which could lead to a significant influx of foreign money in dedicated funds, says Prashant Khemka, founder of WhiteOak Capital Management.
Milind Karmarkar says: “A retail investor definitely needs to be lazy. At the same time, they also need to keep returning back to investment thought and confirm that the investment thought continues to hold in the company. As long as that is there, you do not need to do anything if the prices move up and down, no, not at all.”
One of the biggest challenges which manufacturing companies and too large ones face is the right allocation of capital. The reason, they go through various economic and business cycles where they face both the problem of plenty and scarcity of capital at different points of time. When a metal company starts making money, it mints money. Post that what it does --buy more mines, expand capacity or retire debt -- will determine its future. When looking at manufacturing companies, look carefully at PEG ratio which long-term indicates many things in a better manner than most other ratios.
The combined impact of a de-rating in multiples and lower earnings growth could result in moderate stock market returns in future