Actionables 2.0: Perennial Favourites

Pardon me, the idea is NOT to put you in a spot. Not to get you to comment on every business mentioned in list, but just to make sure we try and understand how your brilliant forensic mind works. And are not overtly biased by strong balance sheet (although extremely important in recovery context) as primary drivers for selection and/or other biases that might creep in!

The purpose was to see whether you would select a few more in the same league as that of Shree Cement, ITC, United Spirits, CRISIL, ICICI Bank.
Will be good to know why you would NOT include a Marico, HDFC AMC, Bata (I think you did the original work in spotting the re-rating opportunity 3 years back), Titan, in the same breadth.

For that matter why would ITC not get excluded on just poor capital allocation track record in Hotels, other segments even if one were ignore the overhang of the excessive regulation/taxation impact on Cigarettes.

Or is it the extent of undervaluation in your mind (ITC, could be case in point) that is pulling it’s weight more in selection? And the length of the runway left in FMCG foray perhaps, all other aspects being equal?

Believe this discussion if conducted in the right spirit by all interested in perennial favourites category (available at bargain basement prices may be not yet :slight_smile:) will create very instructive and enriching mental models for new learner’s as well as seniors.

The idea will be to engage the best senior minds in such discussions to create an effective mental model map for selection of perennial favourites at bargain basement level prices (yet to come) by also focusing on (all other aspects being equal) bringing more weightage to other equally important aspects such as strategic capital allocation/vs poor allocation, growth evidence, capital efficiency, operating leverage evidence, value migration pathway evidence, and the like. Bring the much needed focus on what attributes move the needle the most, and why?

For those interested in such an exercise, good reference material for Mental Models map for Emerging Moats is put up here.

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