The content discusses an investment in Pudumjee Paper, a packaging materials supplier, sparked by a comment in a debate over Swiggy vs Zomato. The author invested a small amount for fun, and the stock price increased. The author shares the lesson of looking for opportunities from different angles during market rushes, using the phrase “sell shovels during a gold rush.” However, other commenters caution that the paper industry is fragile in India and lacks pricing power, with potential disruption from Chinese companies.
In the second paragraph, the content highlights that paper companies are capital intensive and their stocks are volatile. The author warns against falling for the P/E trap, as the largest paper company in Asia is setting up a plant in India, posing a risk. Despite the potential for returns, investing in paper companies requires careful analysis due to the sector’s challenges and risks.
click me for original post link – post sentiment : neutral
Leave a Reply