It is always better to cry without investing than cry after investing: Sunil Singhania
Sunil Singhania, Founder, Abakkus Asset Manager LLP, says “the only theme we follow is whether the company can double profits in four to five years and a lot of these themes are interesting and exciting. But the valuation at which the IPOs are coming and the stocks are getting listed is something which at least conservative investors like us cannot comprehend.”
You have followed a template of 15-15-15, return ratio of 15%, growth 15%, and PE multiple of less than 15. Is that template still at play or the market conditions are forcing you to change that template?
No, it is becoming difficult for sure.
15% ROE is still possible, 15% profit growth is still possible, less than 15 PE is becoming a challenge. But at the portfolio level, you know, our all-cap portfolio is still at around 15.5 times PE one year forward. And the mid and small cap portfolio which is the emerging opportunities is still around 14 times one year forward.
And that is largely because we are quite diversified in our approach. We have some metal stocks also where the PE's are lower.
As I said, we have some banks and public sector banks, which again bring the overall PE multiple of the portfolio at a reasonable sort of valuation. Sofar, it has been pretty good.
