tag:blogger.com,1999:blog-8869164976113181165.post8535405950008058686..comments2023-06-24T15:19:53.356+05:30Comments on Investor Link: Consumer Stocks – Do Product characteristics of business matter?Shikharhttp://www.blogger.com/profile/00931944624694143807noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8869164976113181165.post-63531031063973104032012-12-02T18:53:47.926+05:302012-12-02T18:53:47.926+05:30Thanks Shikhar for the quick reply.
VikasThanks Shikhar for the quick reply.<br />VikasVikashttps://www.blogger.com/profile/15773793906094163924noreply@blogger.comtag:blogger.com,1999:blog-8869164976113181165.post-63461171909776079872012-12-02T17:54:46.664+05:302012-12-02T17:54:46.664+05:30Hi Vikas,
Appreiate your comments.
HUL as a busi...Hi Vikas,<br /><br />Appreiate your comments.<br /><br />HUL as a business is great, though stock performance catches up in spurts I'd say. Moot point is it operates in multiple product categories and at topline of 25k crore, can it grow beyond 15%, may be no.<br /><br />Why not look at a colgate instead. It keeps growing its market share y-o-y in spite of such a mature business, it's more focussed, has solid financials. <br /><br />I loaded both in 2009, they were expensive then too, and stay that way.<br /><br />Regards<br /><br />Discl: invested.Shikharhttps://www.blogger.com/profile/00931944624694143807noreply@blogger.comtag:blogger.com,1999:blog-8869164976113181165.post-1038349282771237792012-12-02T16:55:00.716+05:302012-12-02T16:55:00.716+05:30Hi Shikhar,
Again excellent post.
Writing after lo...Hi Shikhar,<br />Again excellent post.<br />Writing after long time.<br />Hats off to you for the details on FMCG.Specially differences in consumer staple and discretionary and of course, target group and repeat purchases.<br /><br />Now I have a query.<br />Its about HUL.<br />For me I have an anchoring bias that I missed it at 250.And now having another bias that if its going up, it will go up.<br /><br />But all things said and done, I seriously think current PE of 33 is justifiable for business like HUL.<br />For ex. Nestle was PE 45 in 2000 and now also its PE 45. But in these years it has become multi-bagger.<br /><br />As such I am not comparing both, but I think HUL can give say 15 to 20% yearly returns in coming say 5 yrs.<br /><br />Whats your opinion.<br /><br />Regards,<br />VikasVikashttps://www.blogger.com/profile/15773793906094163924noreply@blogger.com