A medium term analysis

Performance of Low PE and High PE Picks in Indian Markets NSE BSE From 2007 To Jan 2010 A medium term analysis:

on June 12, 2007 an article was published on TheIndia Street giving List of 10 Lowest PE and 10 highest PE Stocks

First See the List of High PE Stocks

High PE Shares are those shares on which investors/traders have High Confidence

During Bull Markets they are normally stocks of Day

every TV channel ,every Paper ,magazine features them

High PE Stocks
Company	Market Price	EPS	PE
GMR Infrastructure	512.7	1.34	382.61
UTV Software	468.1	1.54	303.96
shree Cements	1113.35	4.58	243.09
Eicher	264.95	1.18	224.53
Educomp Solutions	1,789.80	8.5	210.56
Zee Entertainment	277.4	1.53	181.31
Kotak Mahindra	568.85	3.73	152.51
Aban Offshore	2,886.15	19.45	148.39
Polaris Software	162.5	1.18	137.71
Glenmark Pharma	678.25	5.43	124.91

We built the table again after adjusting For Split/bonus etc and then Calculated returns From Pricesin June 2007 to 29 jan 2010
Assuming we had invested 10000 in each Scrip( For sake of Calculation only )

So what we see ?

These Stocks posted 25 .6 percent returns Comfortably beating 15.8 percent returns of Sensex

High PE Stocks
Company	Adjusted Market Price in june 2007	Price 29 jan 2010	invested	Current Value	% return
GMR Infrastructure	51.2	60.25	10000	11767.6	17.7
UTV Software	468.1	502	10000	10724.2	7.2
shree Cements	1113.35	2000	10000	17963.8	79.6
Eicher	264.95	564.5	10000	21305.9	113.1
Educomp Solutions	357.96	702.75	10000	19632.1	96.3
Zee Entertainment	277.4	258.95	10000	9334.9	-6.7
Kotak Mahindra	568.85	780.4	10000	13718.9	37.2
Aban Offshore	2,886.15	1205.05	10000	4175.3	-58.2
Polaris Software	162.5	159.9	10000	9840.0	-1.6
Glenmark Pharma	339.125	243	10000	7165.5	-28.3
			100000	125628.2	25.6
Sensex	14131	16357	100000	115752.6	15.8

Now Lets See What Were low PE Stocks in June 2007 ?

Low PE Stocks
Company	Market Price	EPS	P/E
Tube Investment	75.85	46.21	1.64
AIembic	60.3	27.66	2.18
Graphite India	52.95	20.59	2.57
Nahar Exports	26	9.64	2.7
Guj NRE Coke	58.9	20.53	2.87
Atul	84.5	27.99	3.02
Alps Industries	44.5	14.53	3.06
Ponni Sugars	43.7	13.6	3.21
KEI Industries	84	25.49	3.3
Abhishek Mills	45	12.93	3.48

These Stocks Were having no interest at that time
Lets See their returns After Adjusting Base price For bonus Splits

High PE Stocks
Company	Adjusted Market Price in june 2007	Price 29 jan 2010	invested	Current Value	% return
Tube Investment	75.85	74.45	10000	9815.4	-1.8
AIembic	60.30	45.05	10000	7471.0	-25.3
Graphite India	52.95	85.55	10000	16156.8	61.6
Nahar Exports	26.00	25.05	10000	9634.6	-3.7
Guj NRE Coke	42.07	72.65	10000	17268.3	72.7
Atul	84.50	81.8	10000	9680.5	-3.2
Alps Industries	44.50	12.05	10000	2707.9	-72.9
Ponni Sugars	43.70	148.95	10000	34084.7	240.8
KEI Industries	84.00	34.7	10000	4131.0	-58.7
Abhishek Mills	45.00	18.7	10000	4155.6	-58.4
			100000	115105.5	15.1
Sensex	14131	16357	100000	115752.6	15.8