Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

Tata Consumer Products / Equity Bottom-Up

In this insight, we discuss  <a href="https://www.smartkarma.com/entities/tata-consumer-products" target="_blank" data-smartkarma-citation="entities:258:1" rel="noopener">Tata Consumer Products (TATACONS IN)</a> 's potential to outperform peers in the India consumer sector in terms of revenue and profit growth over the next few years. Its inclusion in India's Nifty index from March 31st would attract more investor attention and investment to the stock. The predominantly beverages (branded tea, coffee) company that competes with global multinationals is now expanding its foods business to address the highly unorganised but growing domestic packaged kitchen staples and snacks/breakfast segment. From Tata salt to Tata Starbucks, this consumer goods company already have a wide array of brands under its portfolio. Leveraging on the goodwill enjoyed by the Tata brand in India and by expanding its reach and distribution wider, Tata Consumer is fast-tracking growth in the foods segment. The potential is immense, competition (national level) is scant and the young company (in its new avatar, name and structure) can make it big if it successfully adapts few pages from the playbook of <a href="https://www.smartkarma.com/entities/titan-co-ltd" target="_blank" data-smartkarma-citation="entities:12630:1" rel="noopener">Titan Co Ltd (TTAN IN)</a>- another Tata enterprise that leveraged quality and brand to take on large unorganised consumer sectors.

In this insight, we discuss  Tata Consumer Products (TATACONS IN) 's potential to outperform peers in the India consumer sector in terms of revenue and profit growth over the next few years. Its inclusion in India's Nifty index from March 31st would attract more investor attention and investment to the stock. The predominantly beverages (branded tea, coffee) company that competes with global multinationals is now expanding its foods business to address the highly unorganised but growing domestic packaged kitchen staples and snacks/breakfast segment. From Tata salt to Tata Starbucks, this consumer goods company already have a wide array of brands under its portfolio. Leveraging on the goodwill enjoyed by the Tata brand in India and by expanding its reach and distribution wider, Tata Consumer is fast-tracking growth in the foods segment. The potential is immense, competition (national level) is scant and the young company (in its new avatar, name and structure) can make it big if it successfully adapts few pages from the playbook of Titan Co Ltd (TTAN IN)- another Tata enterprise that leveraged quality and brand to take on large unorganised consumer sectors. 

Tata Consumer (TATACONS IN): Index Inclusion Adds Further Flavour. Tasty Mix.

India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

Thematic (Sector/Industry)

In our previous insight on this subject (<a href="https://www.smartkarma.com/insights/why-indian-ceos-never-ask-tough-questions-to-the-government" target="_blank" data-smartkarma-citation="insights:10370">Why Indian CEOs Never Ask Tough Questions to the Government?)</a>, we had spoken about how the owners and CEOs of Indian companies usually have only good words to say about the government, at least at public forums. So, the recent accolades for Prime Minister by Ratan Tata, ex-Chairman of Tata Group and Anand Mahindra, Chairman of <a href="https://www.smartkarma.com/entities/16441" target="_blank" data-smartkarma-citation="entities:16441:1">Mahindra &amp; Mahindra Ltd (MM IN)</a> are not surprising. However, what the CFO of <a href="https://www.smartkarma.com/entities/2499" target="_blank" data-smartkarma-citation="entities:2499:1">Larsen &amp; Toubro Ltd (LT IN)</a> recently said about Demonetization and GST was a contrarian and more objective view. This should be applauded and hopefully, the government will listen more carefully to these inputs. An honest feedback from industry is important if the Govt is really serious about evaluating its policies objectively and want to achieve quicker results on turnaround of the Indian economy.

In our previous insight on this subject (Why Indian CEOs Never Ask Tough Questions to the Government?), we had spoken about how the owners and CEOs of Indian companies usually have only good words to say about the government, at least at public forums. So, the recent accolades for Prime Minister by Ratan Tata, ex-Chairman of Tata Group and Anand Mahindra, Chairman of Mahindra &amp; Mahindra Ltd (MM IN) are not surprising. However, what the CFO of Larsen &amp; Toubro Ltd (LT IN) recently said about Demonetization and GST was a contrarian and more objective view. This should be applauded and hopefully, the government will listen more carefully to these inputs. An honest feedback from industry is important if the Govt is really serious about evaluating its policies objectively and want to achieve quicker results on turnaround of the Indian economy.

Why Do Indian CEOs Never Ask Tough Questions to the Government - Part 2

It has been more than 48 hours but the debate on Vishal Sikka's departure from Infosys still rages on. On Friday morning, the CEO of <a href="https://www.smartkarma.com/entities/267" target="_blank" data-smartkarma-citation="entities:267:1">Infosys Ltd (INFO IN)</a> resigned after remaining under continuous assault from one of the co-founders of Infosys, N R Narayana Murthy. For more details on this development at Infosys, please refer to <a href="https://www.smartkarma.com/insights/infosys-ceo-sikka-resigns-will-a-professional-chief-executive-be-always-at-the-mercy-of-founders" target="_blank" data-smartkarma-citation="insights:12953">Infosys CEO Sikka Resigns, Will A Professional Chief Executive Be Always at the Mercy of Founders?</a>Parallels are also being drawn between what happened at Infosys just…

It has been more than 48 hours but the debate on Vishal Sikka's departure from Infosys still rages on. On Friday morning, the CEO of Infosys Ltd (INFO IN) resigned after remaining under continuous assault from one of the co-founders of Infosys, N R Narayana Murthy. For more details on this development at Infosys, please refer to Infosys CEO Sikka Resigns, Will A Professional Chief Executive Be Always at the Mercy of Founders?Parallels are also being drawn between what happened at Infosys just…

Will There Be a Repeat of Infosys and Tata Sons at Larsen & Toubro?

<ul class=""><li>Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy.</li><li>In October 2016, Tata Sons board replaced Cyrus Mistry as its Chairman because Ratan Tata was not happy with him.</li><li>There are interesting parallels between the Infosys case and the story at Tata Sons.</li><li>Who is right and who is wrong is a grey area but one size does not fit all.</li><li>The lesson for investors is that ownership and managerial discords are always bad.</li><li>These sudden transitions also create attractive buying opportunities in the market.</li><li>Infosys is a good bet after a 10% correction today. </li></ul>

Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy.In October 2016, Tata Sons board replaced Cyrus Mistry as its Chairman because Ratan Tata was not happy with him.There are interesting parallels between the Infosys case and the story at Tata Sons.Who is right and who is wrong is a grey area but one size does not fit all.The lesson for investors is that ownership and managerial discords are always bad.These sudden transitions also create attractive buying opportunities in the market.Infosys is a good bet after a 10% correction today. 

Tata Sons = Infosys, Ratan Tata = Narayana Murthy and Cyrus Mistry = Vishal Sikka

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

India

Tata Chemicals Ltd. manufactures salt and salt by-products, alkalies and heavy chemicals, pharmaceuticals, fertilizers and agro-chemicals. The Company's salt products include common salt, pure salt and gypsum salt.  Heavy chemicals include soda ash, caustic soda and hydrochloric acid. Tata Chemicals' pharmaceuticals include bromides of ammonium, sodium, potassium and ethyl.

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Tata Chemicals (TTCH IN)

Tata Consumer (TATACONS IN): Index Inclusion Adds Further Flavour. Tasty Mix.

Tata consumer is fast-tracking growth in the foods business by expanding into the unorganised India kitchen staples segment and expanding its...

Devi Subhakesan

Why Do Indian CEOs Never Ask Tough Questions to the Government - Part 2

In our previous insight on this subject (Why Indian CEOs Never Ask Tough Questions to the Government?), we had spoken about how the owners and CEOs...

Pankaj Sharma

Will There Be a Repeat of Infosys and Tata Sons at Larsen & Toubro?

It has been more than 48 hours but the debate on Vishal Sikka's departure from Infosys still rages on. On Friday morning, the CEO of Infosys Ltd...

Pankaj Sharma

Tata Sons = Infosys, Ratan Tata = Narayana Murthy and Cyrus Mistry = Vishal Sikka

Infosys CEO Vishal Sikka has resigned after facing continuous verbal assault from one of the co-founders, N R Narayana Murthy. In October 2016,...

Pankaj Sharma

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors

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