The controversy over Tirupati laddoos has escalated as Andhra Pradesh CM Chandrababu Naidu accuses his predecessor Jagan Mohan Reddy of using adulterated ghee. The issue, which has religious implications, focuses on the procurement process and lack of adulteration checks under Reddy’s administration. Legal battles and political tensions continue to rise.
DDev Plastiks Industries – A Smallcap Gem (21-09-2024)
My two cents on consumer electrical industry as ddev in proxy player in this sector
India is the third largest producer and the second largest consumer of electricity in the world. contributing approximately 8% to the country’s manufacturing production, approximately 1.5% to India’s GDP and approximately 1.5% to India’s exports.
consumer electrical industry entails heavy electrical products such as W&C (A wire is a single conductor, whereas a cable is a group of conductors) and light electrical products such as FMEG.
The W&C and FMEGs were estimated at approximately 1.80 lakh crores in 2023 and it are expected to grow at a CAGR of approximately 10% till 2027 (Market value: 2,66,500)
In 2023, the total domestic market for W&C industry was estimated at approximately 75 thousand crores (41% of consumer electrical industry), It has grown at a CAGR of approximately 11% from 33,500 crore in 2015 to 75 thousand crore in FY2023 and is further expected to grow at a CAGR of approximately 13% till 2027 to reach a market value of 1,20,000 crore.
W&C market can be divided into 5 key sub-categories, namely housing wires, power cables, control and instrumentation cables, communication cables and flexible and specialty cables. Housing wires constitute approximately 32.8% (24,535 crore) of the wires and cables market in India.
There are six key factors supported by a positive macro environment that are expected to provide growth in the W&C and FMEG industry between 2022 and 2032:
- Public and private investment outlay in infrastructure
- Continued growth of residential real estate sector
- Resilient commercial real estate sector
- Transition of automobiles and transport towards electric vehicles (“EVs”)
- Rural electrification 6. Push towards renewable energy
The domestic W&C and FMEG industry is pivoting towards branded play. The share of branded play in domestic W&C and FMEG industry has grown from 60% in Fiscal 2015 to approximately 76% in Fiscal 2023 and is projected to reach approximately 82% by Fiscal 2027
Nearly 72% of the wires and cables market in India is controlled by branded play. Within this 72%, five leading players namely Polycab, KEI, Havells, RR Kabel and Finolex, garner approximately 60%–62% market share and the balance, 38%–40%, is controlled by challenger brands like Syska and V-Guard. Polycab is the market leader, having approximately 16% market share by value, followed by KEI (approximately 8% market share), Havells (approximately 8% market share), Finolex (approximately 6% market share) and RR Kabel (approximately 5% market share). RR Kabel is the fifth largest player in wires and cables market in India.
Simple Investing (21-09-2024)
Again to add, my post was not to say which strategy is better or superior. It was simply to appreciate our own style cutting all noise and thankful I could do that so far.
It’s like my chosen stocks follow different strategies instead of me and I give them that free hand to do that in cycles.
Mudit’s Portfolio (Stage Analysis + Price Momentum) (21-09-2024)
Hi Mudit, would really appreciate if you could share your tactics for position sizing in your momentum portfolio.
Simple Investing (21-09-2024)
This line summarizes it quite well.
Most of the new strategies fizzle out in deep market corrections, and then investors need to sometimes revert back to simple value investing which is the age old strategy and keeps working after every few years and also work across market cycles if the investor has patience!!
Simple Investing (21-09-2024)
To an extent maybe yes, but there are also set of excellent investors who are wired that ways irrespective of market conditions. These set of investors may be the ones who have practiced that strategy across market cycles and stuck to it as it’s the way who they are…
Rudra’s PF and Information attic (21-09-2024)
Hi,
The call-out was on the newly listed Northern Arc and not on Fusion Micro. Thanks for calling out the updates
RIL: Is the ‘Reliance” on ‘Jio’ Justified? (21-09-2024)
I am also holding Reliance for the same demerger play but What if Reliance instead of demerger like Jio Finance decides to do a separate listing for RR and Jio?
How will the existing share holders benefit via vi if it had been demerger.
- Has any time in past MA said that there will be demerger only for those two subsidiaries?
Mayank portfolio (21-09-2024)
Same reason here. I bought Anand Rathi at 1300 and sold at 2800. Put all that money in Nuvama at 3k levels. Rathi is v good but valuations are really stretched. One advantage of Rathi is their 0 debt. Really helps the valuation