High-Quality Stocks that Have Underperformed in the Last 3 Years

High-Quality Stocks that Have Underperformed in the Last 3 Years

Which stock do you currently hold?

- HDFC Bank
- Kotak Bank
- Hindustan Unilever
- Asian Paints
- Infosys
- LTIM

Hindustan Unilever - P/E 51

- 3-Year Returns: (-2%)
- De Rated from 70-80 P/E to ~51x
- May continue to underperform as the valuations continue to remain high
- Sales growth has been flat

Asian Paints - P/E 51

- 3-Year Returns: 4%
- De Rated from 90-100 P/E to ~51x
- Sales growth has been at 5% for the last year
- May face competition from Birla Opus (Grasim)

Infosys - P/E 25

- 3-Year Returns: 3%
- De Rated from 35 P/E to ~25x
- Sales growth has been flat
- Headwinds continue for the IT sector

LTIM - P/E 30

- 3-Year Returns: 6%
- De Rated from a peak of 60 P/E to ~30x
- Post Merger haven't done anything
- Much better growth rates compared to other IT giants and smaller in size
- Much more aggressive

Kotak Bank
- 3-Year Returns: 0%
2019 P/B: 5
Current: 2.84
De-Rating: 43%

HDFC Bank
- 3-Year Returns: (-1)%
2019 P/B: 4.5
Current: 2.5
De-Rating: 45%
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