Gillette’s Eroding Moat & Key Lessons

Posted by | Indian Markets, Investing Framework, Investing wisdom, Stocks | 2 Comments

Back in 2013, I had written a post on Gillette discussing the likely challenges it is going to face in growing its business. A business with such headwinds trading at 80 times earnings should have gone only one way- down. That’s a different thing the stock has actually more than doubled given the exuberance in markets. Nevertheless, it has significantly underperformed the broader markets. For a long time, Gillette was touted as the perfect example of a moated business, well reflected in its 70%+ market share, 60-70% gross margins and extraordinary Return on Capital Employed. This was all being protected by sustained investments in 1). product innovation; pioneered multi-blade technology and kept on launching better razors latest being a 5-blade razor 2). branding to have a dominant recall. The demand was …

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What makes Thyrocare a great business?

Posted by | Food for thought, Scuttlebutt | 9 Comments

What makes Thyrocare a great business? I probably first got to know about Thyrocare Technologies Limited (a company into Healthcare Diagnostic) through a 2010 ET article titled ‘PE firm buys 30% in Thryocare as comapany seeks to tap radiology segment‘ and later in 2012 when Thyrocare had second round of funding  ‘Norwest Venture Partners invests Rs 120 cr in Thyrocare‘ As I read more about the company I found some very interesting pointers: First Indian laboratory to have an IT enabled, 24×7, fully automated diagnostic laboratory Set up covering over 2,00,000 sq. ft. floor space (a centralized laboratory) that ensures error free processing of over 40,000 specimens and over 2,00,000 Clinical Chemistry investigations per night. (mind-boggling numbers..isn’t it?) The unmatched speed factor is achieved through a combination of air-cargo logistics and IT enabled, …

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