I find it interesting that in this bull market, one prominent stock making new lows is Nestle India.
Nestle India trades at high valuations-around 40 Times FY 2013 (Jan-Dec) EPS of 115 Rs.
Their profits for 31 March,2014 showed a drop of 7%.
The market didn’t like this one bit-a growth stock is supposed to keep growing.And hence the stock price is getting whacked.
Am reminded of Hindustan Lever-it sat out the entire bull run of 2004-2008 as it was expensively priced to begin with.
2 replies on “Nestle India-Falling in a rising market”
Yes, You r 100% Right
true….
i even see case of Gillette. loss making dental care business eats out near monopoly grooming business profit. Ad to sales is 27% !!!!
Normalising this, stock is below 30x. On face looks like 80x PE