“So, what you are saying is that we purchase the stock with a market price of say INR 100, which is 20 percent below its intrinsic value of INR 120. If the stock price goes up and crosses its intrinsic value of INR 120, we make a neat 20 percent profit and we sell. Understandable, but you are saying that if the stock price remains stagnant around INR 100, and intrinsic value drops close to INR 100, we still sell?”
