Good company at a great price

#1
Hi All,

I see one company standing above the rest in terms of price. That is wipro. Why is this great company transacting at current levels when the price can be like 350 Rs and above. Can you suggest some stocks like this one?
 

travi

Well-Known Member
#2
Hi All,

I see one company standing above the rest in terms of price. That is wipro. Why is this great company transacting at current levels when the price can be like 350 Rs and above. Can you suggest some stocks like this one?
You can use screeners like screener.in or on in.investing.com and run various filters to suit your needs like low PB or PE's.

Everyone's view is different and you may not get consensus, so while you may feel Wipro is cheap, there's a reason why Mkt has priced it the way it is and therefore its current worth is only that much.
 

mohan.sic

Well-Known Member
#3
You can use screeners like screener.in or on in.investing.com and run various filters to suit your needs like low PB or PE's.

Everyone's view is different and you may not get consensus, so while you may feel Wipro is cheap, there's a reason why Mkt has priced it the way it is and therefore its current worth is only that much.
If you think Market fairly values a stock and a stock's current worth is only that much, why do fundamental analysis on current valuations?
And if current worth is only that much, why do stocks move ?
 

mohan.sic

Well-Known Member
#4
Hi All,

I see one company standing above the rest in terms of price. That is wipro. Why is this great company transacting at current levels when the price can be like 350 Rs and above. Can you suggest some stocks like this one?
sir, why do you think Wipro is cheap at this levels and why 350 and above is fair ?
Even Infy is available almost at same valuation as Wipro. TCS looks expensive comparatively because of recent surge due to expected corporate actions. Otherwise most of top IT company's are at same valuations.

Generally stocks like Wipro ( non volatile in nature - In terms of both Business revenues and low beta in price fluctuations ) tend to be little cheaper than their peers.
 

sanju005ind

Day,Swing Trader
#5
Look at titan it commands so much premium.it is the most over valued in nifty 50 stocks.but who are we to argue when market is ready to pay for it.
 
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travi

Well-Known Member
#6
If you think Market fairly values a stock and a stock's current worth is only that much, why do fundamental analysis on current valuations?
And if current worth is only that much, why do stocks move ?
In such a bull market that's my opinion, whats yours ?
There are people who find joy in catching falling knives, they can be my guest at that counter.
 

mohan.sic

Well-Known Member
#7
In such a bull market that's my opinion, whats yours ?
There are people who find joy in catching falling knives, they can be my guest at that counter.
Am not clear what you are trying to express.
In this case, I said wipro is not much undervalued. It is at par with Infy.
 

mohan.sic

Well-Known Member
#8
Look at titan it commands so much premium.it is the most over valued in nifty 50 stocks.but who are we to argue when market is ready to pay for it.
Yes Titan looks overvalued considering its cash flows. Also like at Raymond's. Such high priced. But still trading at this levels. This price premium could be due to huge increase in the land values they hold.
 
#9
sir, why do you think Wipro is cheap at this levels and why 350 and above is fair ?
Even Infy is available almost at same valuation as Wipro. TCS looks expensive comparatively because of recent surge due to expected corporate actions. Otherwise most of top IT company's are at same valuations.

Generally stocks like Wipro ( non volatile in nature - In terms of both Business revenues and low beta in price fluctuations ) tend to be little cheaper than their peers.
Sir I just want to correct you for that being specific I am talking about Nifty IT where Infosys today's price is 1180, HCL Tech price is 930, TCS is highest at 3500, even the tech mahindra which showed loss in it's financials from IT sister company is at 666, hence most of the top IT companies are at different levels.
 
#10
Hi All,

I see one company standing above the rest in terms of price. That is wipro. Why is this great company transacting at current levels when the price can be like 350 Rs and above. Can you suggest some stocks like this one?
Sir i do not know the specific reason why Wipro is at low price but I think it may be because of it's market presence globally and domestically. I mean to say it might have a higher proportion of domestic business comparing with other rivals like Infosys and TCS. The change in currency rates do effect the IT industry business.
Suggestion about stocks in Nifty IT is KPIT from my side which has better presence than Infibeam in the market.
 

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