Dhoot Industrial Finance (BOM:526971) GF Value Rank : 3 (As of Jun. 09, 2024)

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What is Dhoot Industrial Finance GF Value Rank?

Dhoot Industrial Finance has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Dhoot Industrial Finance's GF Value Rank

For the Chemicals subindustry, Dhoot Industrial Finance's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dhoot Industrial Finance's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Dhoot Industrial Finance's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Dhoot Industrial Finance's GF Value Rank falls into.

Dhoot Industrial Finance GF Value Rank Related Terms

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Dhoot Industrial Finance (BOM:526971) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Dhoot Industrial Finance Ltd (BOM:526971) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

1209, Raheja Centre, 214, Nariman Point, Mumbai, MH, IND, 400 021

Website

https://www.dhootfinance.com

Dhoot Industrial Finance Ltd is engaged in the trading activities of goods and share stocks and power generation. Its operating segment includes Trading, Power Generation, and Others. Trading segments include all trading activities of Chemicals, Electronics, and Paper. The company generates maximum revenue from the Trading segment. Some of its products include Copper Tubes, Zinc Rods, Copper Rods, Carbon Di Sulphide, Compressed Hydrogen Gas, Chloro Sulphonic Acid, Caustic Soda Lye, and others. Geographically the activities of the company are carried out through India.

Dhoot Industrial Finance (BOM:526971) Headlines

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