In this Diversified section we are aiming to discuss those stocks which sectoral analysis not yet fully covered by us and most of them are midcap or smallcap but having huge potential to grow. Below are the sector we will be discussing over her:-
1. Ceramics :- With the blooming Indian economy where housing and housing finance sector already enjoying their healthy growth this particular sector has a hugh potential to grow over the next decade with Mr. Narendra Modi's ambitious project of "Housing for All" contribute a larger opportunity to use ingredients from this organized sector particularly as most of the player are still unorganized in this sector but due to stringent govt fuel policy they coming under regulation and having a trend to merge with the large organized players. So we can bet on few stocks from here like Kajaria Ceramics, Somani Ceramics etc.
2. Packaging & Logistic & Bottling :- I just don’t find the valuations of the unlisted companies in the ecommerce space compelling enough. I find these valuations of Flipkarts, Snapchats to be actually on nosebleed territory. I just follow the valuations and find them to be a bit unattractive. There are better pickings in the secondary market.
We tend to look more at a great high quality available at cheap rate. So I would tend to think that some sectors that might surprise people looking ahead of the next three to five years, perhaps is big e-commerce logistics sector, which with India getting 200 million customers on a smart phone, that represents a huge opportunity. If you look at packaging company, logistics company, media companies – that represents for a stock picker like me a very attractive opportunity for the few years ahead.
The growth will come from the logistics companies. It will be in the packaging businesses; people who help in the packaging business. They all have to advertise because that’s the basic retail calling. So lot of the media businesses will also benefit from that. A lot of the people who are into data would benefit from it. There will be a lot surprising winners in that pocket. But it seems a good sector to start focusing and trying to spot opportunities.
Ultimately everything has to be moved back and forth because if you don’t have retail space you want last mile delivery. Anytime you get last mile delivery that will be very valuable. I think for whatever it is worth globally logistics companies would do well, packaging companies would do well in this business and then of course media. So, you have to kind of go through analysis of all these companies and you will be able to build a portfolio around Smartphone, data, logistics, packaging if you just look at all those verticals.
I am more looking at the people in the cardboard box type of space because ultimately when you get books or appliances they will be packaged in a cardboard box. . Few players we have covered from the sector are "Mold Tek Packaging Ltd" , "Andhra International Paper",TCPL,Blue Dart, Gati, Transport Corporation,Balmer Lawrie.
With a rise in health awareness, increase in tourism and the easy availability of bottled water, the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted for 67 per cent of the market share.This market is expected to grow at a CAGR of 22 percent, to reach Rs.160 billion in 2018.
India's packaged bottled water industry is currently dominated by the top five players, including Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for small regional players to build a presence in regional markets. Few stocks we have covered like "Manjushree Technopack Ltd"
3. Food Processing & Distribution :- Food Processing sector is that sector which has shown a robust growth for last few year and mainly focusing on creating a brand hence we have initiated our coverage on few of them like "Agro Tech Food","Jubilant Foodworks","IFB Agro Industries", "Avantee Feeds".
4. Infra & Construction :- One can evidently say that Narendra Modi led govt has a definite focus on Infra & Construction so based on that we have initiated our coverage on "Gujrat Pipavab", etc.
5. Power distribution & Equipments :- Everyone of us know Power is a big agenda for Narendra Modi led govt but we think it will be better to focus on power distribution equipment than to the power generation so we have covered the company like "Ratnamani Metals and Tubes" , "Cummins India"
6. Garments :- Garments is the sector which we can not but have in our purview because it is the basic need of human and anything but this will go on sale specialty with the increasing rate of e-commerce. So we have done our coverage on "Page Ind","Kitex Germents" etc
7. Textile :- Textile is the industry which not only having a huge growth potential but also demand in Indian as well as US market & specialty driven by the value migration effect from China to India will help them a lot. So we have covered few industries from this zone like "Indo Count" , "Well Spun" , "Trident" etc.
8. Real Est :- Coming to the sector of Real Est I guess there is not much to discuss as many of us know the prospect of it and the only sector which has a next to zero depreciation on it's asset hence any company with lower debt and asset light model good in this sector. So far we have made our coverage on "Brigade Ent","Shobha Developer","Godrej Properties","Ashiana Housing","NBCC"
9. Plyboard :- Plyboard is one of the sector which we tend to ignore due to it's less hyped but robust business. In the current scenario where brown goods like modular kitchen has become a trademark for middle class society there is undoubtedly big opportunity for this sector to grow. We have covered "Century Plyboard" from this sector.
10. Entertainment & Media :- There is a old saying "Every thing that show good will sell good", this can be perfectly fit for Entertainment & Media industry.We have cover few stocks from this industries like "TV Today","Zee Entertainment","Hatai Cable Network" etc.
11. Agro & Chemical Sector :- About agro and chemical sector we initiate our coverage on Kaveri Seeds,Dhanuka Agrotech, Navin Flourin but it is not completed yet hence will be discussed later.
12. Cement :- I did a very interesting statistics on cement which might surprise your viewers too. The United States from the last 115 years used 4 giga tonne of cement for all the highways, interstate construction. China in the last 10-years has used 6 giga tonne of cement. The point is Narendra Modi is believer in construction and infrastructure as he has shown in Gujarat. There could be a huge upside in cement shares. We are now at a position of over capacity and prices are soft but over time as the construction boom unrolls I think cement stocks might actually face shortage of capacity. I am not saying now but say in a couple of year’s time. India is still at some piddling amount of cement consumption, may be 350 million tonne or something like that. So, there is a huge amount and if you follow say the Chinese path you can imagine what will happen to cement company profits.
13. Footwear :- A sector we generally ignore but always return more than we expect because this is a general need of everybody and so under any circumstances it will grow . We have covered few stoks like "Relaxo","Liberty","Bata" from this sector.
1. Ceramics :- With the blooming Indian economy where housing and housing finance sector already enjoying their healthy growth this particular sector has a hugh potential to grow over the next decade with Mr. Narendra Modi's ambitious project of "Housing for All" contribute a larger opportunity to use ingredients from this organized sector particularly as most of the player are still unorganized in this sector but due to stringent govt fuel policy they coming under regulation and having a trend to merge with the large organized players. So we can bet on few stocks from here like Kajaria Ceramics, Somani Ceramics etc.
2. Packaging & Logistic & Bottling :- I just don’t find the valuations of the unlisted companies in the ecommerce space compelling enough. I find these valuations of Flipkarts, Snapchats to be actually on nosebleed territory. I just follow the valuations and find them to be a bit unattractive. There are better pickings in the secondary market.
We tend to look more at a great high quality available at cheap rate. So I would tend to think that some sectors that might surprise people looking ahead of the next three to five years, perhaps is big e-commerce logistics sector, which with India getting 200 million customers on a smart phone, that represents a huge opportunity. If you look at packaging company, logistics company, media companies – that represents for a stock picker like me a very attractive opportunity for the few years ahead.
The growth will come from the logistics companies. It will be in the packaging businesses; people who help in the packaging business. They all have to advertise because that’s the basic retail calling. So lot of the media businesses will also benefit from that. A lot of the people who are into data would benefit from it. There will be a lot surprising winners in that pocket. But it seems a good sector to start focusing and trying to spot opportunities.
Ultimately everything has to be moved back and forth because if you don’t have retail space you want last mile delivery. Anytime you get last mile delivery that will be very valuable. I think for whatever it is worth globally logistics companies would do well, packaging companies would do well in this business and then of course media. So, you have to kind of go through analysis of all these companies and you will be able to build a portfolio around Smartphone, data, logistics, packaging if you just look at all those verticals.
I am more looking at the people in the cardboard box type of space because ultimately when you get books or appliances they will be packaged in a cardboard box. . Few players we have covered from the sector are "Mold Tek Packaging Ltd" , "Andhra International Paper",TCPL,Blue Dart, Gati, Transport Corporation,Balmer Lawrie.
With a rise in health awareness, increase in tourism and the easy availability of bottled water, the per capita consumption of bottled water in India is on the increase.
The total market was valued at Rs.60 billion in 2013, of which the top five players accounted for 67 per cent of the market share.This market is expected to grow at a CAGR of 22 percent, to reach Rs.160 billion in 2018.
India's packaged bottled water industry is currently dominated by the top five players, including Bisleri, PepsiCo, Coca Cola, Dhariwal and Parle. These companies struggle to penetrate the small non-tier cities and towns due to poor infrastructure, thus providing an opportunity for small regional players to build a presence in regional markets. Few stocks we have covered like "Manjushree Technopack Ltd"
3. Food Processing & Distribution :- Food Processing sector is that sector which has shown a robust growth for last few year and mainly focusing on creating a brand hence we have initiated our coverage on few of them like "Agro Tech Food","Jubilant Foodworks","IFB Agro Industries", "Avantee Feeds".
4. Infra & Construction :- One can evidently say that Narendra Modi led govt has a definite focus on Infra & Construction so based on that we have initiated our coverage on "Gujrat Pipavab", etc.
5. Power distribution & Equipments :- Everyone of us know Power is a big agenda for Narendra Modi led govt but we think it will be better to focus on power distribution equipment than to the power generation so we have covered the company like "Ratnamani Metals and Tubes" , "Cummins India"
6. Garments :- Garments is the sector which we can not but have in our purview because it is the basic need of human and anything but this will go on sale specialty with the increasing rate of e-commerce. So we have done our coverage on "Page Ind","Kitex Germents" etc
7. Textile :- Textile is the industry which not only having a huge growth potential but also demand in Indian as well as US market & specialty driven by the value migration effect from China to India will help them a lot. So we have covered few industries from this zone like "Indo Count" , "Well Spun" , "Trident" etc.
8. Real Est :- Coming to the sector of Real Est I guess there is not much to discuss as many of us know the prospect of it and the only sector which has a next to zero depreciation on it's asset hence any company with lower debt and asset light model good in this sector. So far we have made our coverage on "Brigade Ent","Shobha Developer","Godrej Properties","Ashiana Housing","NBCC"
9. Plyboard :- Plyboard is one of the sector which we tend to ignore due to it's less hyped but robust business. In the current scenario where brown goods like modular kitchen has become a trademark for middle class society there is undoubtedly big opportunity for this sector to grow. We have covered "Century Plyboard" from this sector.
10. Entertainment & Media :- There is a old saying "Every thing that show good will sell good", this can be perfectly fit for Entertainment & Media industry.We have cover few stocks from this industries like "TV Today","Zee Entertainment","Hatai Cable Network" etc.
11. Agro & Chemical Sector :- About agro and chemical sector we initiate our coverage on Kaveri Seeds,Dhanuka Agrotech, Navin Flourin but it is not completed yet hence will be discussed later.
12. Cement :- I did a very interesting statistics on cement which might surprise your viewers too. The United States from the last 115 years used 4 giga tonne of cement for all the highways, interstate construction. China in the last 10-years has used 6 giga tonne of cement. The point is Narendra Modi is believer in construction and infrastructure as he has shown in Gujarat. There could be a huge upside in cement shares. We are now at a position of over capacity and prices are soft but over time as the construction boom unrolls I think cement stocks might actually face shortage of capacity. I am not saying now but say in a couple of year’s time. India is still at some piddling amount of cement consumption, may be 350 million tonne or something like that. So, there is a huge amount and if you follow say the Chinese path you can imagine what will happen to cement company profits.
13. Footwear :- A sector we generally ignore but always return more than we expect because this is a general need of everybody and so under any circumstances it will grow . We have covered few stoks like "Relaxo","Liberty","Bata" from this sector.
No comments:
Post a Comment