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*Marius Motogna, investor: "Companies are listed at a multiple compared to the book value, but when the shareholders withdraw from the companies, in some cases, valuations appear where the price is far below the book value"The recent evaluations of some companies drawn up to determine the price they have to pay to shareholders who withdraw from companies, following corporate operations such as divisions or changing the object of activity, have caused dissatisfaction among investors.
Byju's floated a rights issue in January to raise $200 million through equity rights issue at an enterprise valuation in the range of $220-250 million which is a 99 per cent reduction in its peak valuation of $22 billion.
While it might be too early to call or to some it might appear to be wish of which bears on the street would have, but the way the market breadth has panned out, there is probability of a selective correction taking place, which is essentially led by the profit booking. At this time if one is looking to increase exposure, it would be better that they should look for stocks where there are some improvements in the business operating matrix that tend to weather the storm better. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
"We have been growing at 23%, which is significantly faster than the market growth rate of 13%," said Kishore Kumar Poludasu, MD, SBI General Insurance.
Sunil Subramaniam prefers good quality in portfolio, whether PSU or private sector, due to capital adequacy and government ownership ensuring governance. He sees value in TVS, M&M, Tata Motors, Maruti. Two-wheelers and entry level passenger cars expected to bounce back. Bullish on commercial vehicles due to capex and election cycle. Ample liquidity in market, mid and smallcaps attracting investment.
The market is pricing in a BJP victory with a majority in the upcoming general elections, but any disappointments could lead to a big setback for markets. Kedar Kadam says prefers largecaps over smallcap/microcaps and value stocks trading at reasonable valuations. In terms of sectors, we remain constructive on themes of capex (engineering/Infra/building materials), pharmaceuticals, 2-wheeler auto, and select specialty. chemical companies.
The market is pricing in a BJP victory with a majority in the upcoming general elections, but any disappointments could lead to a big setback for markets. Kedar Kadam says prefers largecaps over smallcap/microcaps and value stocks trading at reasonable valuations. In terms of sectors, we remain constructive on themes of capex (engineering/Infra/building materials), pharmaceuticals, 2-wheeler auto, and select specialty. chemical companies.
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