Tata Consumer Shares Analysis | Tata Consumer Shares Fundamental Analysis

September 09, 2021

Tata Consumer  Products:

Tata Consumer  Products

Tata Consumer  Revence Share

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10 High Growth Industries for Stock Investment

August 17, 2021

10 High Growth Industries for Stock Investment

hello friends all of us we like to invest in companies which can generate a lot of return for us and one of the most important criteria in doing that is we should be able to identify companies which can grow at a higher rate and which can grow for a long time so high growth and long term growth uh these are two very important criterias so that we can find a big pond and then a fish which can you know grow for a longer time in that pond so if the industry tailwinds are easier if there are industry tailwinds with high growth it becomes easier for companies to grow and when we think about how to identify investment ideas one of the way to identify investment ideas is uh by identifying industries which can grow at a very high rate so the question is which are those industries which can grow at a very high rate because typically if we see the industries are same it's the same height it's the same pharma so we need to look a little deeper inside that and identify pockets of high growth so in this video what i will do is i will try to identify our top 10 uh business segments which high growth potential along with decent market size opportunities so that we can find interesting investment ideas and if you like the video do subscribe and uh to the channel and do let us know what are the industries which you want us to cover in terms of companies to find those ideas so let me share my screen and let's see which are some of these industries so we are covering 10 high growth industries and the before that a disclaimer whatever sectors or companies whatever companies we are discussing nothing is a stock recommendation this is purely for educational purposes so the first industry which comes in this list is fmcg and the company belonging to this industry uh we will discuss later but fmcg has multiple sub segments and one of the sub segment in fmcg is extruded snacks basically these are the package snacks like uh lays or corkray or whatever you know we eat those packaged snacks and this specific industry it's crude segment excluded extruded snacks this is growing at a 15 percent rate the whole uh industry growth rate is lower but when we talk of the organized industry the organized industry is growing in 15 so if we can find a company which is growing at higher than industry growth rate here is a good recipe for double digit growth industry and the market size currently is almost 50 000 crore uh which will become one lakh crore in next you know five to six years based on you know fifteen percent growth and the next industry belong is uh belonging to automobile sector and i think this many of you will be aware regarding you know the eb growth in the the electric vehicle and electric vehicle is projected to have very high growth it is projected to have a 44 growth in coming years and from 35 000 crore market this is supposed to become almost a 3.3 lakh crore market in fact if we see the global data right now the total electric vehicles out of the overall car in terms of cars it is only two or two point two percent which is supposed to increase and because it is going to become five and ten percent over next five to ten years so that is the kind of you know growth potential this particular industry and business segment has the third segment comes from media and entertainment sector and this is none other than online gaming we are seeing that the current generation as it is getting glued more and more to mobile and electronic gadgets the trend of playing games indoor on the electronic gadgets is increasing and historically the last few years this has been one of the very high growing industries and specifically to india this particular market of online gaming is growing at 32.6 percent uh recently one of the companies in online gaming which is like one of the leader company in india uh they came up with the ipo so if we look at the growth potential the current market size of this specific business segment is 10.5 000 crore uh which is going to be soon in next few years at a 32.6 percent this market is going to be a 25 000 crore market so the idea should be to identify such industries which can grow at higher than the gdp growth rate uh then we need to find companies which are leaders in those industries and then further we need to do analysis in terms of not all these industries let me uh let me caution you despite of such a high growth rate not all industries end up creating wealth and the reason being some of the industries don't have any barrier to entry some of the industries may have very high competitive intensity very less pricing power so once but the idea is let us identify first which are the growing industries and then go and do a detailed analysis of the industry do a detailed analysis of the company covering all the analysis in terms of uh the barrier to entry the porter fight force analyzes special analysis industry structure analyzes supply chain dynamics and then identify uh which could be the bets which should be taken but to look for i think online gaming is one of the very interesting industries which one should study if he aims to you know put in their money in companies which can grow at a very high rate the other segment is very close because it also belongs to media entertainment industry which is related to digital media and entertainment which means the traditional media entertainment which was in terms of movies or music which was through a physical infrastructure the all that is shifting to digital infrastructure and uh this not only includes the entertainment part but also the digital advertisement and you know all the things and this specific segment is growing at almost 23 percent and in next few years this is going to be a 40 000 plus crore market segment uh so we have covered fmcg we have covered auto we got few uh interesting ideas from media entertainment uh india being services industry i think it will be important to look at some of the high growth segments in services sector and if we look at services there are two important segments which come one is security services and another one is facility management services so security services it covers both manpower services as well as technology services for security and this specific industry is growing at 14 and this is one of the industries where there is a very high concentration of unorganized workforce which is slowly converting into organized and this market itself right now it's a 80 000 crore market which is going to become a 1.6 lakh crore market by 2025 growing at 14 and again the idea should be to identify which are the companies which are present in some of these sectors i have mentioned some of these companies i have written some blogs on some of these companies and on my blog you can go and you can visit it uh in the next video again i will in the next video what i will try to do is i will try to go one more level uh below and based on you know whatever segments or sectors or companies you want to cover out of this maybe i'll put few more youtube videos uh the other one in services is facility management so facility management is all about uh providing the cleaning services and then there are you know hard facility management soft facility management services spread across multiple sectors like it could be for uh you know the typical commercial id infrastructure or it could be facility management for a health care and these are different niche and the growth rate further differs on you know each of these sub segments but the overall facility management segment itself is growing at 19 and it's a one lakh hour market which is supposed to become 2.3 lakh crore in few years growing at 19 and there there are a few small cut and micro cap stocks also available in you know these industries and it would be very interesting because if the industry is growing at this rate even if these companies can you know match the growth uh you know if you have a top line growth of 19 20 percent uh you know these are like very good scenarios to plan for somebody who wants to look for growing companies to you know grow as well uh the next set of segments are from healthcare sector and i have been an admirer of healthcare sector right from the time when you know this sector was kind of written off in 2018 because of whatever uh you know regulatory issues which were going on but i felt nobody i mean those who were bearish on the sector they didn't look at the terminal value of this sector like fmcg health care is also going to be required the chances of disruptions are less and it's a human requirement you can't get away and the whole terminal value concept of this sector itself is what you know always attracts me to towards this sector and even though there are certain uh little capex heavy businesses if we bifurcate this sector there are a lot of interesting segments available and i have tried to highlight four segments from this sector which are high growing segments the first being health insurance segment and the health insurance segment is expected to grow somewhere around 17 to 19 percent and in terms of cross rated premium the current market size is almost 38 000 crore which is going to be 79 000 crore market in next four to five years and there are few uh recently listed companies which are present in the health insurance domain so i would suggest you to go and look for some of these companies and you know study those companies also soon we will be doing a webinar along with soic ishmael on healthcare and many more other sub sectors from insurance industry so do keep uh tab on our youtube channels on our twitter twitter pages to stay updated about the upcoming webinar on the insurance sector uh the second sub segment which not many people are talking about because there may not be a specifically dedicated company in this sub segment but i have seen there are companies where some part of revenue is being generated from this sub segment and as time progresses because the growth opportunity in the sub segment is so huge that slowly over a period of five to ten years some of these sub segments might become a significant revenue contributor and this is nothing but home health care services and home health care services again it constitutes of multiple stuff it constitutes the diagnostic services it constitutes the nursing services it also constitutes the home healthcare or diagnostic equipments like you know uh to measure the oxygen or to you know to measure various kind of body elements or to relieve various kind of body elements there are otc based products which are provided and all of that comes in home healthcare services so we can have some companies on the product side and we can have also companies on the services side in terms of diagnostic and you know manpower services from healthcare perspective and this sub segment is again growing at almost 19 and 36 000 crore market is soon in few years going to be a 70 000 crore market the other two sub segments from health care uh one is cro uh contract research organizations and uh i'm presenting the data for asia pacific because there is a trend of a lot of cro world being outsourced from western nations to asia-pacific nations which means rather than looking at india opportunity better we look at what is the kind of opportunity is asia pacific pros and we do have certain companies which are catering to some of the global clients uh competing with some of the asia pacific companies and growing at a decent double digit growth rate because the industry itself is growing at a double digit growth rate and this industry is growing at a kagger at asia specific level is growing at almost 11 and the market size of 57 000 crore is going to be 1.3 lakh crore and now imagine if there are companies which are working on small you know to 3 000 crore kind of turnover you can imagine what is the market share they have and if they are doing really well even if they increase their market share by one or two percent what kind of you know opportunity there is ahead of them and the last supplement in healthcare is pharmacy and uh again when i go back to 2018 when i first time presented apollo hospital many considered apollo hospital as a hospital but only when somebody uh you know bifurcated the revenues looked at the revenue growth rate look at the looked at the financial economics one could have realized that apollo hospital is not only a hospital it's a big pharmacy business in making and if we look at the growth rate of pharmacy sector retail pharmacy it is growing almost at a 10 percent level and then in retail pharmacy if one looks at online pharmacy which is the e-commerce way of channel of doing pharmacy online pharmacy is growing at almost 34 percent and we do have certain companies in india present in each of these segments so it's up to us to you know look at some of these industries and again it is again like services manpower services this is another industry segment which is very unorganized and right now the market size is almost one lakh crore which is going to be a 2.3 lakh crore market in next few years so just you can imagine the kind of big size pond you have and you know the opportunity of going segment in double digit you have so these are some of the top 10 segments which are growing in double digit at a very high growth rate and if you try to you know drill down and identify some of the companies in these areas you will be able to identify some of the opportunities and then you can do your research and you know at the right time you can take the position and from our side we will try to do research and you know make more presentation so do let us know out of these 10 high growing segments which are the segments which are your favorite uh do post post your comments below the youtube channel youtube video and let us know if you want us to cover some specific segment and we will do a segment analysis and we'll post another video uh don't forget to subscribe our channel and also we have a lms learning management system we have a training program on teachable scientific investing where we have various kind of fundamental courses technical courses quants courses so do write to us in case you are interested in any of them and i will see you in the next video thanks a lot thanks for your time

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CDSL Shares Analysis | CDSL Shares Fundamental Analysis

August 12, 2021

CDSL Shares Fundamental Analysis

CDSL has many streams of revenue and only 19% of revenue comes from transaction charges. Only 4% of investors in India have the Demat account so there is a large opportunity ahead. I don't see a big impact because of investors also investing in other country stocks.

Revenue breakup:

Transaction charges: 19%
IPO/corporate actions: 10%
Online data charges: 16%
other: 10%

around 50% of their income is market sensitive. in a bull market, it will be very good and in a bear market, it will be very bad.

CDSL Shares Analysis, CDSL Shares Fundamental Analysis

Q: what will be the impact on CDSL due to NSE allowing trading for foreign funds
A: Additional positive trigger..

Q: but people will be interested in other country stocks, so depository will be different and that depositary will take market share (because money will shift from domestic market to international market) of CDSL...

A: No. The NSE floated foreign stock proposal is to use the existing depositary. So, investors buying foreign stocks through NSE will have their shares in NSDL/CDSL. And pay transaction charges to NSDL/CDSL. So, it is a +ve trigger.

Q: that means it will limit or end the cyclic nature of depositories and discount brokers(Angel broking, 5paisa) businesses.

A: Good point. The past cyclicality of CDSL revenues may reduce.

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Deepak Fertiliser Shares Analysis | Deepak Fertiliser Shares Fundamental Analysis

July 31, 2021

Deepak Fertiliser Shares Fundamental Analysis

Reduced loan: 840cr in 2021
Reduced pledging

  1. Industry chemical - Pharma - IPA and others
  2. Mining chemical - cement, Power, Coal
  3. Agri chemical -

Shift From china to India => nitric acid business
Commodity to Speciality Chemical
Cost optimizing - margin improvement

over the last now more than a decade all are the three businesses that we are into that is industrial chemicals mining chemicals and fertilizers all three we are finding are beautifully aligned with the India growth story.

We still have around 15 to 20 percent headroom in our capacities.

key raw material  for all the three businesses => ammonia  => backward integration
logistics costs => half a million tons in a year => 70 to 80 dollars per ton
ammonia facility next door to our current complex
March 2021 => 1500cr investment
Plan => 24 to 36months
next two yer => 1350cr per year

Tip: in the future ammonia can be used as fuel as scientists suggest.

LNG prices => global LNG prices on a longer-term basis are indeed soft and very attractive and that LNG is the key raw material for our ammonia project so that is something that we are looking at
rate of return (RR): 18-20% from ammonia plan because of the low value of LNG

it's a huge import substitution Aatmnirbhar Bharat project and we could be looking at somewhere close to 25 000 crores in a 10-year period that could be something that would be a forex saving.

From product to solutions
in the fertilizer business unlike the traditional method of focusing on the product whether its urea and pk ssp you know instead of the product focus kind of an approach that typically is there in the industry we are moving towards a more holistic solution-oriented approach where we are looking at a nutrient basket for sugarcane a nutrient basket for cotton a nutrient basket for fruits and vegetables so we are bringing about a complete shift from product to solutions and they shift from customer to consumer so instead of focusing on the channel we are going to be focusing on the farmers.

performance fertilizers

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Laurus Labs Shares Analysis | Laurus Labs Shares Fundamental Analysis

July 31, 2021

Laurus Labs Concall takeaways-:

* Crams including FDF and API are more than 25% currently.
* 80% of Future Capex in Non ARV.
* Huge FTF and Para IV opportunities post 2025 where drug market size is more than billion dollars.
*Expertise in Chiral chemistry, High potent capabilities.
* Will be among the top 5 Indian players according to reactor capacity soon.
* Have developed New complex API's in Non ARV space.
* 1500-1700cr capex plan by end of FY23, 213 capex done in this quarter.
* New 500cr capex will be happening in CDMO. Asset turn will be around 1.4.
* CDMO- Multiple opportunities here due to their process innovation expertise and reactor capacity.
* Acquiring 25 acres of land which will have the potential for 3-4 million litres fermentation capacity. In phase 1  will start with 1 million litres.
Current Capacity -1.8 lakhs by Q3.
I feel a long runway for growth with multiple levers is in place. CDMO and Biologics will be the future growth drivers and with the impeccable execution capability and chemistry expertise of the company, Laurus will positively surprise us every now and then.
Invested and biased

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Syngene Shares Analysis | Syngene Shares Fundamental Analysis

July 30, 2021

Syngene Shares Fundamental Analysis

Syngene Fundamental Analysis,Syngene Shares Fundamental Analysis,Syngene Analysis,

Top 8/10 are Syngene customer

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Deepak Nitrite Analysis | Deepak Nitrite Shares Fundamental Analysis

July 30, 2021

Deepak Nitrite Shares Fundamental Analysis

Deepak Nitrite FY 2021 AGM notes
  1. Dahej 02 new CAPEX coming at 125 acre
  2. To enter the Fluorination process to create advanced intermediates for life science products
  3. FY 21 investments
  4. Deepak Nitrite: 350 cr
  5. Deepak Phenols: 750 cr
  6. R&D spends is up 2-3X
Brownfield expansion of IPA is also nearing completion which will double our IPA capacity to 60,000 MTPA. Probably it will available in Q2FY22.

Capex Programmes 

  • We have committed around ` 300 Crores towards new products in the immediate future at newly acquired land at Dahej. In addition to this, 
  • another amount of around ` 100 Crores has been committed in various brownfield expansions of existing products. We are also doubling IPA capacity at our Dahej (DPL) plant.

Management Plans

  1. Based on the encouraging demand trajectory, we have initiated key capex projects during the fiscal. This includes land development at our newly acquired Dahej site, comprising 55 acres out of total 127 acres in the first phase. This facility will support capacity enhancement for key products in the standalone business. 
  2. Brownfield expansion of IPA is also nearing completion which will double our IPA capacity to 60,000 MTPA, and other existing products are being expanded inline with market growth. 
  3. Forward integration projects based on phenol and acetone is currently being finalized, and shall be launched soon. 
  4. In another important development, we will be investing around ` 300 Crores into new products based on environmentally friendly technologies for agrochemical and pharmaceutical intermediates. 
  5. We are also in the process of building a world-class Technology Centre at Vadodara which will further strengthen our R&D and piloting capabilities. 
  6. In terms of our technology platforms, we have further developed our competency in nitration, reduction and diazotization – and also added new platforms like fluorination and photochlorination.

Deepak Nitrite Concall Snippets (Q1FY22)-:

  1. New capex of 300Cr in Deepak Nitrite for Lifescience Chemicals with end-use in pharma and agrochemicals.
  2. New capex of 700cr in Deepak phenolics will be downstream and having applications in paints and coatings.
  3. Both import substitutes.
  4. Demands growing at very high rates in both the products they will be developing. 
  5. They will domestically be #1 in those segments.
  6. Also adding platforms of Fluorination and photochlorination to their existing platforms. These will work in synergies with current platforms.
  7. Process intensification and Product development are the key pillars for continuous margin improvement and gaining relevance globally.
  8. A lot of opportunities are coming but will invest only in those projects where we have a high degree of certainty in succeeding and synergies.
  9. Fine and Specialty business margins were affected due to high freight costs as a lot of exports from that division and in some contracts freight is on their end.
  10. DASDA prices have started to normalize.
  11. Asset turns of minimum 2x in our every project.
  12. We are in discussions with couple of global innovators  for long term contract opportunities. Will inform when something finalizes.
  13. There will be fungibility in all our new projects.We will be able to make several products and they will be decided according to mkt scenario.
  14. *Our goal is to use 35% of our phenol capacity captively. There is also scope of debottlenecking for phenol.
  15. *Brownfield projects not included in current capex guidance.
  16. *IPA capex will contribute from Q3.
  17. *Will get in only those products where they can be among top 3 globally

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