Prasanta das
06/10/2023
What is a Value stock Reliance Industries Limited is a name that needs no introduction. In last 10 years The profit of reliance has gone up by 14 times. Whereas the market Capitalization has only gone up 4.5 times. Why is that so, because a lot of the growth potential of the stock was already captured in the pricing in the year 2013. However, even after that Reliance has given approximately 15% CAGR and adding 2% dividend yield the total becomes 17% CAGR. 17% is almost 2.5 times more returns than fix deposit There have been companies which have given upwards of 25 to 30% returns in the last 10 years also which were essentially high growth stocks. Reliance has been a value stock, and as the company starts to mature the price to earning ratio starts to drop, and hence identifying companies, which are mature and keeping them as a part of portfolio is known as value investing. Share your thoughts on other companies, which are also value, stocks?
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