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

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Beating the Street

I learnt a while ago, when reading non-fiction books, it’s important to mentally separate the content into what’s interesting because it’s entertaining and what’s interesting because it has underlying principles that help me understand the world better. Great books tend to combine entertainment and providing tools/frameworks but most books lean one way or the other. For books on investing and business in particular, I learnt to become wary of eloquent stories replete with hindsight bias that end with convenient and short takeaways as a guide to successful anything (outthinking competition / managing world-class teams / investing…). For investing books, unless the content is

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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

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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

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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,

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How to Get Lucky

It isn’t enough just to be good. You’ve got to be lucky, too. This is the central premise of Max Gunther’s book “How to get lucky”. I first came across this author when reading “The Zurich Axioms“, a set of investing rules followed by Swiss Bankers to manage risk and reward. It starts with this comforting idea that we fall short of our goals largely because of a lack of luck. That we deny the role of luck when successful only speaks to our susceptibility to survivorship bias. And yet, according to Max, luck, in gambling, career, love, friendships and even

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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

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Markets after FY2018: Bull or Bear

FY2018 was an ok year for Indian markets. The statement seems strange given what has been happening since late January. In spite of the correction over the last two months, we still ended the year up 10%+ on both the NIFTY and the NSE 500. Not quite the blockbuster returns we saw in Jan 2018 when both indices were at 20%+ returns for the financial year and certain individual stocks were giving double-digit returns in a matter of days. Things were so good that a random selection of stocks would have done fairly well over the last year [Read this before deciding

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