Micro Irrigation in India – A Macro View

Posted by | Issues in India, Stocks | 3 Comments

I was speaking to a fellow value investor when he mentioned how frustrating it is to look at the shrinking universe of value stocks with which I couldn’t agree more. Most of the good small & mid caps have doubled and trebled over last 3-4 months. Its a great thing to see your portfolio go up in value everyday but the issue starts when you don’t find new value stocks, or good entry point for own portfolio stocks, for deploying your incremental funds. As I look at the stocks in our portfolio and coverage universe, there are a very few which haven’t moved in past 6 months. One such stock is EPC Irrigation, a micro-irrigation company owned by Mahindra’s. Its into similar business like Jain Irrigation. The following link will take …

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DFM Foods_Crax going pan India

Posted by | Stocks | 7 Comments

It is hard to find somebody in north India who hasn’t had Crax as a kid; many even have it today after growing up just like I do Crax brand is owned by a listed company called DFM Foods Limited. DFM stands for Delhi Flour Mills which was their original business and later got demerged into a private company of the promoter group. Without getting into too much detail; I’ll give an overview of the company and then straight come to the point. DFM now owns three brands: Crax (corn rings) being the flagship brand accounts for 76% of the topline,  Natkhat (wheat puffs) 5%, Krunchoids  which is the latest addition 5% and remaining from Namkeens. Three decades old Crax corn rings are available at Rs 5 SKU (95% of …

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What my neighbourhood jockey dealer has to say about the brand

Posted by | Stocks | 7 Comments

Earlier jockey was into premium range only, now its available at all price points Indian brands like Rupa, Euro would cost you 90-100 for an undi whereas you can get a Jockey at 120 There are five separate distributors for different segments/range So, out of the 6 working days in a week, five days you have a different Jockey distributor sitting in your shop and taking order. You order today and its delivered the next morning Both distributors and dealers get credit of 15-30 days, however PDCs are given at the time of ordering. 2% discount for cash payment Dealers are given 20% margin and mostly sell on MRP, its unlikely you would get discounts anymore Very happy with company and the brand, value-for-money products – Good quality stuff with lots of variety Company over time has built …

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Some thoughts on Gillette India

Posted by | Stocks | 2 Comments

One common bullish viewpoint made by most of the investors regarding Gillette has been “Market potential is huge considering its a highly under-penetrated market & Gillette is largely a monopoly business”   Lets break up the target market into urban men & rural men and see if there is actually that kind of potential:   Urban Men (Metro/Tier I/ Tier II) Look around and talk to any working man, chances are that he will be shaving with a Gillette razor.   Now if entire target segment in Urban area is already using a Gillette product where can the growth come from? Uptrading: A guy using Gaurd/Presto could up trade to a Mach3 and later to Fusion. Rise in working population: Every year some part of youth, which otherwise finds it cool to keep beard, would …

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How to fix india’s flawed education system

Posted by | Issues in India | 9 Comments

Before I come to the point, let me tell you where this post is coming from: In my MBA program at least half of the subjects were same as I studied in my graduation, in fact for some the recommended books were of the same authors. It was during this phase I could compare the quality of teachers, the teaching methodologies and what dramatic effect these two can have on the learning. Later I enrolled myself in one of the toughest finance courses in the world- Chartered Financial Analyst, USA. This is a self-study program where only the content is provided to the candidates and they have to appear for exams. During my three years journey, I never felt any need for classroom coaching. Why? It is because of the …

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