Namaste!
1) BCG is a very good mid-cap stock for investing, based on my analysis. It has average EPS of Rs 4. 40 for the last 6 years. It also has corrected enough to look good to value investors.
2) It's intrinsic value (IV) is Rs 184, if India 10Y Treasury yield of 6.1% is considered. I personally use Sir Ben Graham's formulae, in which he has put 10 Year Treasury Yield at the denominator. Hence, if the treasury yields go up, then stock and overall market's IV will go down, it's that simple.
3) Currently, Treasury yield is around 7.4%. But I expect it to go down, in the upcoming time.
4) I do not suggest investing more than 5% of your entire capital in this stock. I suggest many stocks, but you have to pick your favorite ones yourself.
The price for investing in should be Rs 36.55. Remember, you should buy only when it break that level. I will also be buying some shares.
Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment carries an element of financial risk. Please do your analysis and/or consult your financial advisor before investing.
1) BCG is a very good mid-cap stock for investing, based on my analysis. It has average EPS of Rs 4. 40 for the last 6 years. It also has corrected enough to look good to value investors.
2) It's intrinsic value (IV) is Rs 184, if India 10Y Treasury yield of 6.1% is considered. I personally use Sir Ben Graham's formulae, in which he has put 10 Year Treasury Yield at the denominator. Hence, if the treasury yields go up, then stock and overall market's IV will go down, it's that simple.
3) Currently, Treasury yield is around 7.4%. But I expect it to go down, in the upcoming time.
4) I do not suggest investing more than 5% of your entire capital in this stock. I suggest many stocks, but you have to pick your favorite ones yourself.
The price for investing in should be Rs 36.55. Remember, you should buy only when it break that level. I will also be buying some shares.
Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment carries an element of financial risk. Please do your analysis and/or consult your financial advisor before investing.
Trade active
Comment:
There will be many upper and lower circuits. Please don't get panic and sell. Holding it until either of two scenarios is always a better solution than selling it at a loss.
Comment:
Looks like it is heading Rs 24.
Comment:
Stock is falling mostly because promoter holding has decreased rapidly over several quarters. Whereas, FII holding have been increasing at the same speed. Maybe promoters sold holding expecting a bad year ahead for the company and FII bought seeing the very high value (i.e. low P/E = high value with certain risks). But either of them have to bear "opportunity cost". I have some shares of it so I fall onto FII side (i.e. optimist).