Reason for buying:
PE is reasonable and below 10 years PE median of 14.75.
Earnings have increased for the last 2 years.
Operating margins have improved in the last 2 years.
Return on equity is good at 42.87%.
Debt is low at 55 cr and cash is 154 cr.
Altman Z-Score is 8.22 and above 3
The market cap of the company is 3912 cr.
Buy date: 05/12/2021
Buy Price: 660.75 Qty: 15 Buy EPS: 79.32 Buy PE: 8.33
Buy date: 18-Aug-2021
Buy Price: 594.00 Qty: 16 Buy EPS: 75.73 Buy PE: 7.84
Buy date: 15-Nov-2021
Buy Price: 502.50 Qty: 19 Buy EPS: 65.41 Buy PE: 7.68
Buy date: 23-Nov-2021
Buy Price: 461.35 Qty: 21 Buy EPS: 49.09 Buy PE: 9.39
I was skeptical when buying because the revenue and net income drastically improved in the last 3 years. The original investment I could lose in any stock will not be more than 1lakh and for me to invest 1 lakh the stock has to go down by 90% and BuyPrice/Current EPS should never be more than 20 for every 10% drop in the buy price.
The buying price is expensive, debt is now zero and if EPS continues to drop to 33.03 I will stop buying.
Disclaimer: The video is for educational purposes for my family and friends. I am not a financial advisor and do not consider it as buy or sell. Taking advice from a random guy on the internet is harmful to your portfolio. I do not do a deep analysis of stocks I buy them just as a hobby.
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