Unglamorous, boring and expensive! Rarely, have the wealth creators been cheap: Atul Suri

Atul Suri, CEO, Marathon Trends — PMS, says “people are scared to buy at 30 PE, 40 PE, because historically these have been 10 and 15 PEs. But the fact is if the numbers continue to come, if they continue to deliver, that is really how bull markets are made. All great stocks have been expensive. Rarely, have all the wealth creators been cheap. The fact is that these companies tend to beat. And when they beat, what looks expensive suddenly looks cheap.”
Give me an example of where strength in the market has surprised you. It is not a recommendation. We are discussing one or two names.
Let us say electrical equipment. I would not take a name because I own the stock, but it is in the midcap space. You realise that all these unglamorous, boring companies went up. People say now they are at 40 PE, 50 PE and they have become very expensive. But these companies are delivering 30-40-50% returns and what looks expensive one quarter suddenly looks cheap the next quarter. As earnings keep coming, if you have an industrial revival, these companies will continue to surprise.

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People are scared to buy at 30 PE, 40 PE, because historically these have been 10 and 15 PEs. But the fact is if the numbers continue to come, if they continue to deliver, that is really how bull markets are made. All great stocks have been expensive. Rarely, have all the wealth creators been cheap. The fact is that these companies tend to beat. And when they beat, what looks expensive suddenly looks cheap and that