It’s the same business. Just on roadways. How does it matter.

Thanks for the reply Shankar, I watch your videos regularly and also read thru the article on Zaggle, helped re-assure some of my understanding of Zaggle’s business.

As per the news article in Business Standard, following is the scenario:

The ice-cream brands under HUL, including Kwality Wall’s, Cornetto, and Magnum, account for about 3 per cent of the company’s annual sales, which exceed Rs 60,000 crore.

(HUL) decision to form a committee of independent directors to assess the future of its ice-cream business has sparked high interest among major companies, with speculation rising that the consumer goods giant may eventually sell the division, reported The Economic Times citing industry insiders.

Companies like RJ Corp, which operates KFC and Pizza Hut chains and handles bottling for PepsiCo, the MMG Group, which runs McDonald’s in North and East India and is a Coca-Cola franchise bottler, as well as the local unit of Nestle SA, are closely watching HUL’s move. These companies are expected to evaluate a potential acquisition of the ice-cream business, depending on the committee’s decision, sources said.

On Friday, HUL announced the formation of the independent committee to explore “potential structures and alternatives for the restructuring” of its ice-cream business, signalling the possibility of a strategic exit.

“These suitors have clear synergies with the ice-cream business, and any deal will likely revolve around the business’s valuation,” an industry executive told The Economic Times.

What is meant balancing Equity Portfolio? Why it is very important?
Let us take simple chemistry knowledge from our school days
H2 + O2 ->H2O
Even though, Hydrogen and Oxygen combined together forms Water this equation is not balanced, it actually violates Law of conservation of Mass.
Hence equation is balanced like this
2H2 + O2 → 2H2O
Even if you are consuming protein, ask a nutrition expert, expert will tell you quality of protein you eat is very important. There are 20 essential Amino Acids, if they are not available in right proportion quality of protein reduces. Good protein has quality of 1 , say what you have consumed has quality of 0.7 it means even if you have assimilated 10 grams, only 7 grams is useful rest will go waste.
This proportion even exists in your equity portfolio, Portfolio should be balanced. The weights of equity can be derived by its historical price data (It is not a lagging indicator-these proportions change by small delta over long intervals). Equity with proper proportion has minimum standard deviation (risk) for a given return on investment.
It can be computed mathematically. Balanced equity for Investors (Not day traders) gives better returns in long run compared to any other proportion.
This is factor number one to consider after selecting right scrips by fundamental analysis for investment.
Second important factor is diversity, look at the data, Nvidia lost 278 Bn USD in a day’s trading, Lehman crashed in a day. Indian Equity markets are not different from this. Yes Bank, Suzlon, Jet Airways, DHFL, even reputed brand like some of the equities of TATA and Infy came down by as much as 30% during crisis. Good companies recover, bad companies will not, and some companies need very long time periods.
Hence rather than walking in the dark and without any clue, being aware about such risk and to know how much impact it will have on our total portfolio holding value makes sense.
https://www.AntsAnalyzer.com
is a web-based application that is coupled with Large cap, mid cap and small cap equities (above 5000 cr market cap) from NSE, that helps by giving what is balanced portfolio composition and is your diversity adequate to safeguard your interest through 2 reports.
Note these two factors are independent of each other, first factor gives right balancing and second one diversity. One need to have both to protect Investment value.
Try it today! Write your feedback and we can share how it works.
Please share it with your friends who invest in equities.
Thank you!