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wis wrote:How did you calculate 50% growth? I see only about 10%.
Gaja wrote:One of the share which is out of the purchasing power capacity of the most retailers
wis wrote:Gaja wrote:One of the share which is out of the purchasing power capacity of the most retailers
Is it really? Look at how retailers went after CFIN.
Yes, you can apply this formula for companies with good consistent future growth. Also Nest is a company like that. But i think the assessed growth rate is too much. It's always better to apply a growth rate 60 % of last decade growth rate ( 10 years may be good), So it gives a valuation of Rs 1400. But with high dividend it gives some extra value as well so Rs1500 may be the suited value. But your valuation is correct. Thanx for giving a great answer and probably the best justification with facts and figures. Thx mateDileepa wrote:On a P/E based valuation, yes NEST is over valued.
But on a intrinsic valuation NEST is not over valued.
Eg: graham formula gives about 1900/=.
#55 (8 + 2 * 14) = 1980
I personally believe that NEST will stable around 1900 by the end of this year.
It is true that in terms of DY(2.9%), there are better counters.
But the dividend growth rate of last 5 years is over 20%.
Therefore current yield should double in every 3.5 years.
#ln(2)*100/20 = 3.47
Also following record is unmatched by any counter.
PS. my views may be bit biased here. I'm long on NEST
I do reinvest all my dividends on NEST irrespective of the current price.
I entered at 900 level and currently my gain is over 1M. My DY is 3.6%
This is a great share to start DRiP investing.
1800 is not too high to enter,
but you have to go slowly, building up a safety buffer during the process.
dudi wrote:Hello everyone,please express your expert views on this.thanks
Because it is the only listed milk powder producer ?sashimaal wrote:May happen sooner than we think![]()
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