To: Mohan Marette who wrote (6253 ) 9/2/1999 8:57:00 PM From: Mohan Marette Read Replies (3) | Respond to
Time to pick bargains as markets decline "If the market can zoom to almost 5,000 level only on hopes of a stable Government at centre, then god only knows what levels the Sensex will touch if we actually had a stable Government," says a NSE broker . Tightening of margins and ban on negotiated deals by Securities and Exchange Board of India (Sebi) has brought the rampaging bulls to a grinding halt."With the fall in markets, the valuations have become compelling. If one has the capacity to hold, it is time to enter," says a BSE broker .Take for instance, Thermax Limited . The scrip, in this week alone, has lost Rs 43 to close at Rs 263.7. The stock now is enjoying a PE multiple 9.94. With the revival in the economy, the company should do well. Similarly, in the case of Ashok Leyland , the scrip which has lost nearly 12.52 per cent to Rs 127.9. Since its Friday closing, the valuations are cheaper at 74.81 times as against 85.52 times.Zee Telefilms . The scrip has shed more than Rs 519 in last three trading sessions, as the market was not happy with the merger ratio of 1:1 with Zee Multimedia. However, this has proved to be a boon for those investors who missed the bus earlier. The scrip is now trading at below 100 PE multiple of 91.16 times. Despite a free fall in the Sensex, a host companies have managed to improve their valuations. Take for example Apollo Tyres .Gujarat Gas , the stock has become expensive almost 56 times its earnings per share, while it was changing hands at 49 times its fiscal 1999 earnings just three days ago.
