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Investing

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Investing

The SRF stock is a market outperformer but its balance sheet doesn’t justify the rich valuation

The SRF stock has returned 52% over the last one year and 58% year-to-date, outperforming the Nifty 50. However, a closer look at its financials reveals a puzzle that doesn’t go with the share-price performance. Falling fixed-asset turnover, lacklustre top line, fluctuating profitability, negative FCFF, and rising debt to equity – there’s more to the SRF stock’s success than meets the eye.

Investing

The SRF stock is a market outperformer but its balance sheet doesn’t justify the rich valuation

The SRF stock has returned 52% over the last one year and 58% year-to-date, outperforming the Nifty 50. However, a closer look at its financials reveals a puzzle that doesn’t go with the share-price performance. Falling fixed-asset turnover, lacklustre top line, fluctuating profitability, negative FCFF, and rising debt to equity – there’s more to the SRF stock’s success than meets the eye.

Investing

Can investors flirt with a quality stocks bubble? A diversified portfolio can pay off on D Street

Scores of quality stocks have been multibaggers for value investors over the past few years, but many now find them expensive, trading at high PE multiples. Is there a bubble in the making? Perhaps not, though many of these stocks appear overvalued. Smart investing – buying the cheaper growth stories and selling those trading at high prices – and a diversified portfolio can help investors profit from the market.

Investing

Small- and mid-caps appear attractive, but watch out for working-capital ratios

Small- and mid-caps have been out of favour this year as Dalal Street has opted for the relative safety of blue-chips. While valuations of the smaller companies are now looking attractive after the correction, investors would do well to examine their working-capital ratios carefully in the wake of the systemic liquidity crunch since these numbers will make or break them.

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