Indian luggage industry stands at around 10000 crores; which has grown at around 12%-15% CAGR over the last 5 years. It is slated to grow at another 15% over the next 5 years The global industry stands at $50 billion and is expected to grow at 6%-7% CAGR. This implies…
Category: Knowledge Bytes
Industry Analysis
Indian automobile industry
Indian automobile industry is an integral part of India’s GDP. Manufacturing constitutes 13%-14% of India GDP. With the focus on make in India and manufacturing capabilities, India would likely take this to a much higher percentage of the GDP. With agriculture GDP growing in very low single digits; For India…
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Air Transportation – India
Air transportation – India can be divided into 2 categories – Passenger traffic and freight traffic. India has a population of around 1.4 billion. As can be seen from the chart below, around 38% of India lives in cities. Following is the chart of air passenger traffic in India. Passenger…
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The impact of water deficits across the world
The impact of water deficits across the world has taken center stage given the global climate change focus. Though this topic is not directly linked to financial markets, there is an indirect impact of global warming and water deficits on financial markets. Recently, there has been an increase in prices…
Knowledge Bytes
Equity research framework to arrive at an investment decision
Following is the research framework I follow to arrive at an investment decision. Though the below is mostly a high level framework, I try and keep tweaking it based on the industry/ company whenever required. The objective is to identify companies which will make substantial return for an investor over…
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Importance of contingent liability while making an equity investment
What Is a Contingent Liability? A contingent liability represents a potential obligation contingent upon the outcome of an uncertain future event. These obligations are recognized in financial records if it’s likely that the event will occur and if the amount of the liability can be reasonably estimated. If both conditions…
Industry Analysis
Fertilizer industry – India
Industry overview and major products The plant nutrition industry consists of mainly 3 elements – Nitrogen (N), Phosphorus (P) and Potassium (K). The ideal ratio required is 4:2:1 in Nitrogen, Phosphorus and Potassium. Following are the consumption details of the elements: India consumes higher quantity of fertilizer per hectare of…
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Related party transactions
Related-party transactions refers to a deal or arrangement made between two parties who are joined by a preexisting business relationship or common interest. Companies often seek business deals with parties with whom they are familiar or have a common interest. Although related-party transactions are themselves legal, they may create conflicts of interest or lead…
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Importance of Capex in determination of company investment decision:
Importance of Capex in determination of long term prospects of a company Capital expenditure can be an important variable in deciding the attractiveness of a company for long term investments. Capital expenditure is basically the expenditure that a company does to build further capacity / maintain current capacity. It can…
