26/03/2015 Professional & Short Term Course
Avoid investing fancy stock: PFA fundamental analysis of Bosch
1) Marginal increase in sales turnover (6.77% cagr) in last 5 years…Calendar year 2010 Rs. 6900 cr to calendar year 2014 Rs. 9574 crore
2) Marginal increase in Net Profit (4.10%) in last 5 years (Rs. 859 crore to Rs. 1050 crore)
3) As per last 6 quarter moneycontrol analysis…MF are holding stock but not buying.
4) Dividend growth (CAGR) in last 5 years is only 13%
5) But share price on 25th March 2010 was Rs. 4845 to today Rs.25,771…5 times rise in 5 years mean CAGR return 40%.
Bosch is a good stock but price is increased 5 times in last 5 years but not backed by fundamental…Retail investor must avoid so called fancy stocks like bosch, eicher motors etc because above prices are driven by white collar operators…They buy bulk quantity over period of time at lower price and later on create fancy and our innocent retail investors buy at high price and wholesale investor makes huge profit.
Ideally, Retail Investor should invest through MF to avoid losses or poor returns.