Stock investors are greedy people; nominal returns are not enough, only multibagger returns appeal to them. But more often than not, such a trade comes to light only after the stock has run the race.
Worse still, there is this rare occasion when most analysts are negative on a stock and yet it keeps rallying!
We all knew TVS MotorBSE -1.50 %, but rarely talked about it as it was way down the order in the two-wheeler space. Look back and you realise this stock has delivered something like a 1,500 per cent returns in five years.
Missed opportunity? Ah, that can’t really give solace.
Shares of TVS Motor has zoomed 1,500 per cent in last five years (from Rs 33 level to Rs 535 level), compared with a 60 per cent rally in LML, 94.49 per cent jump in Bajaj AutoBSE -1.11 % and 105 per cent surge in Hero MotoCorpBSE -0.62 %.
That again is kind of a trigger for them.
“The stock is highly overvalued. We have been keeping a sell rating on it, and we will continue with that. We prefer Hero Moto to TVS and I think we will continue with that,” Kohli said.
Brokerage Sharekhan likes TVS Motor, as it believes in the company’s ability to gain market share consistently, propelled by new launches and its focus on the forthcoming high-margin premium motorcycle segment can help it improve margins.
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