Weekend Observations 23rd Dec 2023

Weekend Observations 23rd Dec 2023, Company Analysis

INVESTING

RTI For Money, Lillaney

12/24/20232 min read

46 stocks hit a new 52 week high and 0 stocks hit a new 52 week low on Friday.

299 stocks closed near their 52 week high and 26 stocks closed near their 52 week low.


From the above it seems that the market is in a bullish mood and ignoring the worries related to war, increasing US debt, etc. This could also be because the markets believe that the Fed hike cycle is near its end and the Fed is likely to start lowering rates from Mar 2024 which is just 3 months away. The probability of it happening is more than 75% which will give a huge boost to the bull market underway since Mar 2023 when it hit a bottom during the SVB crisis. As per current estimates Fed will reduce rates by 150 bps during 2024 which will be good for businesses and stock prices.

The near 52 week low list has 6 large cap companies which I see as follows:


Tata Technologies is at a P/E of around 80 which is on the higher side compared to its ROE and Sales/EPS growth. I think KPIT Tech is a better bet and once can also consider Netweb Tech on declines which is a play on the AI theme.

Dabur India is at a P/E of 50+ which is on the higher side compared to its ROE and Sales/EPS growth.

Hindustan Zinc is at a P/E of 15+ which seems cheap but is high when compared to its Sales/EPS growth. Company has been paying dividends but the group is in some trouble, so I would keep it on my watchlist for the moment.

Page Industries is at a P/E of 80+ which is on the higher side compared to its ROE and Sales/EPS growth.


HUL is at a P/E of 55+ which is on the higher side compared to its ROE and Sales/EPS growth.

UPL is at a P/E of 20+ which seems cheap but is high when compared to its Sales/EPS growth.

Please consult your financial advisor before investing. The above are just my views.

What are your weekend observations?

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