Bharat 22 ETF FFO – Should you Invest?

Bharat 22 ETF opened its FFO (Further Fund Offer) starting June 19th, 2018 for anchor investors followed by other investors from June 20th to 22nd. link Wait, Back up a little. ETF? Bharat22? FFO? And most importantly, should you invest? Exchange Traded Funds and how they differ from Mutual Funds ETFs or Exchange Traded Funds are baskets of securities traded real-time on exchanges, just like individual stocks. They differ from mutual funds in two key ways: Structure: An investor buying ETF units is usually buying pre-built blocks of shares created by the asset manager or from other investors. With a mutual fund, the

Read more

The curious case of HUL and how the markets play favourites

Hindustan Unilever just posted its results for the quarter ending March 2018. A healthy 14% year-on-year increase in net profit mostly attributable to a poor base quarter. HUL stock price promptly went up from around 1504 to 1574, a 4% increase in a couple of days. It is now valued at 65 times Earnings This means, If HUL’s profits stay the same and it paid out all of it’s profits to shareholders, it would take 65 years for a shareholder to recover her current buy price. For context, the NIFTY is at 27 times earnings. Chart shows HUL Earnings and

Read more

Debt in Indian Companies

How much debt have Indian companies taken on over the last few years? Chart shows the aggregate debt on the balance sheets of listed Indian companies from 2008 to 2017. Note this is from a sample of ~ 1,000 largest companies by market cap. Since 2008, total debt has grown by 3.7X from 7.6 Lakh Crores (USD 116.8 Billion) to 28.3 Lakh Crores (USD 434.9 Billion) in constant currency terms. For context, the lines on the chart show total debt as a percentage of market cap and of country GDP (unadjusted for inflation). Which brings us to the natural question: Which

Read more

The most profitable industries in India

If you were to guess which are the most profitable industries in India on a PBITDA basis, what would your top 3 guesses be? How about the least profitable industries? Chances are you didn’t guess Marine Port & Services, Roads & Highways and Mining for the former and Commercial vehicles, Storage Media & Peripherals for the latter. Chart shows the top 10 most PBITDA profitable industries in India as of the last financial year. It also shows the PBITDA for the period 2012 to 2016 for comparison as well as the most profitable industry in each sector. Note that sectors with aggregate

Read more

Fastest growing sectors in India

India Sector Sales Growth Chart shows aggregate Sales Growth by sector from 2008 to 2017, ordered by top 40 sectors by Sales in FY17. The growth columns show compounded growth rates broken into two periods, 2008 to 2014 and from 2014 to 2017. The red shaded cells in the ’14 – ’17 column show sectors that have seen negative sales growth in the last three years. The green shaded cells highlight the sectors that have grown faster in the last three years than in the six years before that. Banks continue to be the largest sector by revenue over the

Read more

India’s top sectors over the years

India Sector Market Cap Rankings Graphic shows sectors that have been in the top 10 sectors by aggregate market capitalisation in India over the last ten years. Top 10 rows in the table correspond to the rank as of March 2018. The final ‘CAGR’ column shows annualized growth rate in market cap over the same period. Takeaways 20 different sectors have been in the top 10 largest sectors by market cap at some point from 2008 to 2018 implying significant churn in investor interest However, the current top 3 market cap sectors, Banking, IT Consulting & Software, Pharmaceuticals in addition

Read more

India Market Cap Growth: 2008 to 2018

Continuing the #indiamarketnumbers series on data-centric posts on the India Market. India Market Cap Growth: 2008 to 2018 Chart shows total India Market Cap from 2008 to 2018 with the year-on-year % growth (orange line). Takeaways Total Market Cap of publicly listed companies in India has grown from ₹26 Lakh Crores ($400B in constant currency terms) in 2008 to ₹140 Lakh Crores ($2,162B) over ten years, a growth of 5.4X Over the last ten years, markets have shrunk in three years, the biggest fall of 29% happening during the 2008 financial crisis. 2012 and 2016 saw marginal negative growth. Other than 2013,

Read more

India Markets in Numbers – Top sectors by Market Capitalisation

This is the first in a series of short data-centric posts on the universe of publicly listed companies in India. The data spans 10 years of financial performance of over 1,700 companies listed on the NSE across 100+ industry sectors. The series of posts tagged #indiamarketnumbers summarizes key takeaways and trends in sector growth, profitability, and stock performance. None of these posts should be construed as investment advice. The Universe of listed Indian Companies As of March 2018, the market cap of 1,723 companies listed on the NSE is at 1,50,54,158 INR Crores (2,162.8 USD Billions). This accounts for almost all

Read more