andcontinuouslykeep toachievethe increases.We
Thanks Ayush for reply. You and hiteshji have a midas touch and can virtually make returns from any company simply by identifying valuation lows and high. Especially you have (reading from dalal-streeet) unparallel understanding of chemical,petrochemical,fertiliser,speciality chemicals, API,leather and tannery business,tyre companies,CRAMS,midcap pharma. This is a huge opportunity and you have large choice of stocks to chhose from.In my case as I have already explained in previous posts very few companies qualify after my filters.
My investment style has developed by studying spending patterns of my wife and her friends. There are about one crore urban independent earning women armed with about two lakh ruppes to spend annualy(discritionary) and their spending decisions are not affected by global macros. There are about same amount of women in rural/semiurban markets who infuence a lot of spending. I am trying to inderstand pattern of their spending and beneficiary companies.
1)Women spend a lot of money on house decorations,interiors,curtains and furnishings. But they stay away from big furniture spending.
2)Women spend a lot on gold jwellary. Five years ago they moved from local jwellers to titan and present trend is towards stylish designer brands like TBZ
3)Cookware remains evergreen buying preference.
4)Branded clothes in middle sector like westside (trent) or max retail.In higher range global desi or ritu kumar/Anita Dongre
5)Jim memberships like gold (talwarkar is not fashionable),salsa classes,cooking classes,dance classes ,hobby classes like painting etc
6)Women spend a lot of money on kids clothes,games.
8)Women spend a lot of money on school fees and force husbands for good schools.
school chains like tree house would be benefited.
9) Increasing spending on hygene products like quality sanitary napkins,undergarments etc.
10)Casual and fine dining (especially chisese and Italian)
11)Beauty parlors/lifestyle beauty clinics
If one were to draw any conclusion out of this present consumer bull run in not broad based but actually driven by women.Two lakh crore of targeted spending per anum which infact is going to grow is a huge opportunity and still a lot of steam is left in
companies like hawkins/Tbz /Speciality/tree house/P& G etc.
These are basically B2C companies which are able to pass on price rises to their buyers without much complaint.
Coming back to B2B companies here the customers are more educated, powerful than seller and constantly looking for cheaper alternatives.Hence long term business at good margins is very difficult to predict and maintain. These companies bear risks associated with capex and do not get rewarded sufficiently at the end. Hence I have stayed away from these businesses so far.
But learning from seniors from here will slowly allow me develope conviction on these companies also and in future and I would love to have some exposure to them.
regards, it feels great when we talk directly to you or hiteshji and helps us to develope our own investment style with conviction with constant learning from seniors like you.
Regards and please do raise a question about my investment style if Iam making any drastic investment blunder.