Skip to main content

Expensive stocks in Nifty

The Indian Stock Markets have run up sharply from 8k to 12k, in a very short span of time. So too have many top index stocks. At current market prices, most frontline stocks are no longer cheaper and many are in overheated territory.

The fair value of a stock is usually measured by : price-to-book value (P/BV ratio), price-to-earnings multiple (P/E ratio) and dividend yield (in percentage). A long-term investor would prefer a company with a lower p/e multiple and lower P/BV ratio.The key to find out whether it is cheap or expensive is to compare the current valuations with historical averages.

So, when comparing current ratios with historical averages of last quarters, most of the top index heavy weights are running ahead of fundamentals. The top 5 expensive stocks in Nifty right now are Reliance Industries, Tata Comm, BHEL, NTPC, HDFC Bank.




These stocks are fundamentally good stocks but running high now. So one can buy these stocks around their fair values, based on their historical averages.

Buy low, sell high !

Labels:

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !
Read more

What is Specialized Investment Fund (SIF)

What is Specialized Investment Fund (SIF) SEBI rolls out Specialized Investment Fund with Rs.10 lakh minimum investment. What is Specialized Investment Fund? This newly launched class aims to fill the space between mutual funds and PMS, offering a flexible and specialized option for investors who are willing to make riskier bets and seek higher returns. Why the Need for SIFs? Mutual funds, by nature, attract a wide range of investors and are governed by strict regulations to ensure broad accessibility and safety. They are more suitable for conservative investors or those with a lower risk appetite.   On the flip side, PMS offers tailored strategies but typically requires a significant minimum investment (Rs.50 lakhs and above) often too large for smaller investors, and with a complexity that may seem daunting for those without deep financial expertise.  This is where the SIF comes in. SIFs are designed for those who are more informed about the market, willing to take on a hig...
Read more