Hi, I am holding ABSL AMC shares allotted in ipo ~720 p.sh. CMP is 373. Should I sell or hold ?

Ans: Exit the stock

Ans: Hold the stock

Ans: Dear Rakesh,

Thank you for reaching out for financial advice regarding your investment in Adani Wilmar Limited (AWL).

As you mentioned, AWL is currently trading at Rs 412 with a trailing PE (Price-to-Earnings) ratio of 73 and an ROCE (Return on Capital Employed) of 20%. A high PE ratio generally indicates that the market has high expectations for a company's future growth. However, whether these expectations are realistic depends on various factors like the company's financial health, industry growth, and overall market sentiment.

In the case of AWL, a PE ratio of 73 seems to be on the higher side, suggesting that the market is pricing in substantial growth expectations. As a financial advisor, I share your concern that this PE ratio may not be sustainable, considering the industry average and other market factors.

Although I cannot provide an exact suitable PE ratio for the industry without further information, a more reasonable range for the industry might be around 15-25x, depending on the specific sector within the industry and the growth prospects for individual companies. If we were to assume a more conservative PE ratio of 20x for Adani Wilmar, this would translate into a share price of approximately Rs 235 [(20 * Earnings per share) - assuming the company's earnings remain constant].

It's essential to consider other factors like the company's financial health, growth prospects, and industry outlook before making any investment decisions. I would advise you to evaluate your investment goals, risk tolerance, and time horizon before deciding whether to hold, sell, or buy more shares in AWL.

Ans: something FISHY going on in MIRZA. i am not comfortable with this stock. take a calculated call.