Value Trap: Beware of these stocks
These stock baskets seem very attractive in terms of valuation due to lower PEG (Less than 4), Lower P/B (less than 10) but actually it is quite misleading. The price fall or decreased price is discounting or warning of fundamental deterioration. Many companies having decent historical track of sales turnover, profitability ratios may face such a situation due to slowdown in economy/industry, high debt burden, high competitive rivalry, inefficiency of the management's better to avoid such stocks soon from your portfolio instead of averaging down these value traps.
by Kishore
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S.No. | Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | Div Yld % | NP Qtr Rs.Cr. | Qtr Profit Var % | Sales Qtr Rs.Cr. | Qtr Sales Var % | ROCE % | EPS 12M Rs. | CMP / BV | PEG |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1. | Flomic Global | 75.01 | 38.50 | 136.27 | 0.00 | 1.13 | -38.59 | 134.58 | 51.38 | 8.64 | 1.95 | 3.12 | 0.25 |
2. | IndiGrid Trust | 146.83 | 32.68 | 12253.83 | 7.66 | 98.73 | 165.57 | 835.78 | 16.70 | 7.08 | 4.78 | 2.17 | 3.71 |
3. | PNB Gilts | 101.00 | 8.07 | 1818.10 | 1.01 | -10.11 | 37.92 | 362.36 | -5.88 | 6.81 | 12.56 | 1.21 | 1.66 |
4. | Godrej Industrie | 1136.95 | 49.51 | 38287.02 | 0.00 | 312.40 | 76.86 | 4824.83 | 34.39 | 5.59 | 14.45 | 4.49 | -1.37 |
5. | S P Capital Fin. | 56.28 | 28.91 | 33.83 | 1.78 | 0.07 | -46.15 | 1.31 | 54.12 | 3.17 | 1.95 | 1.37 | 0.96 |