Originally posted by Jaspreet Hitesh Sir, First up, its very encouraging and enlightening to view your posts. I like your method and systematic approach. I had a couple of doubts around the following: 1. PI Ind: Are you satisfied with the very high P/BV this one has? Also, it has a higher debt and liability component than comfort. And finally, its got single digit NPM. 2. Shanti gears: Im usually sceptical of small midcaps with low promoter share like this one has 44%. Also its return on equity is around 13% which is lower. Would really love to know your thoughts around this. :) Also please take whatever I say with a pinch of salt since im new to the world of investing. Thanks so much and keep the good work up!

PI -- Price to book value is an outdated concept. What u need to look is the kind of growth a company is likely to show. For that matter u can compare p/bv of other companies like page, hawkins, titan, zydus etc and u will get the idea. debt at end of june qtr was around 133 crores for PI. Against a market cap of 1200 i guess it is pretty okay. There might be some more capex to the tune of another 125 crores over next two years for new facility to come up.

shanthi is a turnaround story and needs to be looked in that perspective. market cap 335 crores-- cash and equivalents around 40-50 crores-- valuation of surplus land adds some more value. And post restructuring things seem to be getting on track since past 2-3 qtrs.

You can read up the threads on both stocks available on TED to get a better idea.