Govt should de-control petrol prices: Rakesh Jhunjhunwala
Published on Tue, Jun 23, 2009 at 12:52 | Source : CNBC-TV18
Updated at Wed, Jun 24, 2009 at 18:34
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Govt should de-control petrol prices: Rakesh Jhunjhunwala
Speaking on the Budget, Rakesh Jhunjhunwala, Investor and Trader, said the budget will be first serious policy statement of the government. It was not important from a longer-term perspective, he added.
Q: Are you generally worried about where valuations have reached or you think that is not necessarily the case at this point?
A: In midcaps the valuations are still not anything which is a whack out of the world and we cannot look at valuation isolation - when I initially came into the markets, if the price to book was very high, I was worried - for example a company like Hindustan Lever. But the fact is that I have seen so many studies when return on equity (RoEs) are high, price to book is very high. So I just cannot look at this company has 20 P/E and it is very expensive this company has 8 P/E and it is not expensive.
Q: But the fact that so many companies are rushing in to raise capital, does it worry you?
A: But a lot of them are on the verge of bankruptcy. They have no option and of course there are some good ones - if you had gone to some of the companies, for example if the company's price was Rs 250 at 2007, they wanted Rs 375. Now if the price is Rs 90, it would be at Rs 85. So they are doing it because they don't have choice and some are having old habits, money is available, take it, ambitions have no limits.
