However we must ascertain and analyze before investing. So many people would have recommended to buy certain counters even at the PE more than 15 times. Such counters are purely based on speculative expected performance where we cannot imagine of greater results.
In my view ALUM and ALUF is overpriced. Hence don't burn your finger by getting caught.
However LALU (EPS - Rs 9/- for last 3 quarters) and PARQ (EPS - Rs 5.30 for last 3 quarters) have high chances of reaching Rs 100/- and Rs 80/- respectively. Hence we can expect superb results under these conditions. These counters trade below 10x PE.
Anyway LALU, PARQ, ALUM and ALUF are controlled and manged by Dhammika Perera which is a monopoly in the market. Hence I expect Aluminium industry would grow without any doubt based on increased price for wood products, decreased raw material prices, monopoly by above 4 companies in the market.
Hence I recommend to HOLD LALU and PARQ for medium term. COLLECT ALUM and ALUF at lower price levels.