The text discusses the valuation of high-growth companies like Trent and DMart, emphasizing that their stock prices are heavily influenced by growth expectations. It explains how a reduction in profit growth can significantly decrease a company’s valuation, using Trent as an example. The text also highlights the risks associated with high PE stocks due to uncertainties in growth sustainability. It concludes by mentioning that DMart’s ownership of store land gives it an advantage over Trent.
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