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Comparing Stocks within the same sector
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jstk
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Quote jstk Replybullet Topic: Portfolio of promising unlisted Indian companies
    Posted: 27/Nov/2006 at 1:03pm

The market has seen a lot of IPO’s over the last 24 months. Most have been successful in raising the required money. On listing, the market has given the ‘Thumbs up’ to some while many others have floundered. One similarity in these IPO’s has been that these companies, as commercial entities have their own addressable markets which are largely B2B.Very few touch lives of the average Indian on a day to day basis [a la HLL, ITC, Bharti, Colgate, Hero Honda, Maruti] I have tried to list some unlisted homegrown companies, which own brands which are a part and parcel of our everyday lives. The association is so strong that more often than not the brand becomes the company.

 

1] Bennett Coleman & Company: The brand -Times of India. This is the Big Daddy of Media in India and has been a trendsetter by its hardcore bottom line focused strategy. A very large % of urban India wakes up every morning to get some more of the TOI fix. Has other interesting properties like ET, Navbharat Times, Maharashtra Times, Femina, India Times [Times Internet]. I believe they did a NP of approx Rs.550 cr on sales of Rs.1800 cr in 04.

2] Parle Products: The brand-Parle-G. This single brand at a price point of Rs.4 & Rs.2 does more revenue than the combined revenue of all the Mc Donald’s, Pizza Huts & Dominoes in India!! To many underprivileged, Parle-G and a cup of tea is a midday meal / lunch. The brand continues to grow in spite of the launch of various me too products with better packaging like Tiger from Britannia & Sun feast from ITC.Parle-G target market is from 2 years to 80 years. The Company has other brands like Monaco, Krack jack, Hide-n-Seek.

3] Yashraj Films –The brand-Yash Chopra Presents is virtually a ‘money machine’. Their marketing is top of the line, content –above average & presentation superb. They have a success ratio of close to 90%. Even a dud like ‘Neal & Nikki’ managed to recover costs. With their forays into film distribution [national & international], music [Yashraj music] and setting up of a world-class studio, there is nothing in the Movie chain that Yashraj does not do. Every single movie from their stable has a stupendous opening and is known to cover costs within the first week of release. Has a huge fan following pan India.

4] Gujarat Co-op Milk Marketing Federation: The brand-Amul. The Taste of India. They have made Butter, Cheese & Ice cream [all western products] a part and parcel of everyday Indian lives.

5] Life Insurance Corporation of India: The brand- LIC is synonymous with Insurance and safety and the largest Insurance company in India. It is rare to find an Indian who has not been approached by an LIC agent to invest in a policy!!

6] Bharat Sanchar Nigam Limited: The brand-BSNL is the No.1 Telecom service provider in India. Their sheer reach makes them unbeatable. Very strong in the rural / non-Metro places.

7] Enam: They are undisputedly the foremost Investment Manager in the country. They might not be well known outside market circles but their super reach and ability to raise large funds makes them a must include in this list.

8] People Interactive Pvt Ltd: The brand-shaadi.com.This is without doubt the most innovative of all the above.Shaadi.com has changed the way matchmaking is done in India. They have completely transformed the matrimonial market and have made a huge property on the basis of a simple idea. They are taking it further ahead through Shaadi Point. The addressable market is huge & the opportunity size [India + NRI’s] is mind-boggling. They have other portals like fropper.com, astrolife.com. Sister concern People Infocom runs mauj.com.

9] Samant Soma Wines Ltd: The brand- Sula. Sula has been primarily responsible for the revival of the wine market in India. The product is good, they have managed product placement in all the right channels and are currently a ‘must have’ on the menus of most functions. Retail pull has been strong. They are selling everything they produce and fighting to cope with demand. Capacity addition looks imminent. Sula has the potential to become the equivalent of Kingfisher Beer in the wine category.

 

 

Expected Valuation:

 

The valuation is done on the basis of data on these companies available in the public domain and also other listed entities in India / abroad in similar lines of business.

 

Life Insurance corporation of India

Rs.1, 75,000 crores

Bharat Sanchar Nigam Ltd

Rs.1, 50, 000 crores

Bennett Coleman & Company

Rs.30, 000 crores

Gujarat Co-op Milk Marketing Federation

Rs.10, 000 crores

Enam

Rs.7, 500 crores

Yashraj Films

Rs.6, 000 crores

Parle Products

Rs.4, 500 crores

People Interactive Pvt Ltd

Rs.2, 500 crores

Samant Soma Wines ltd

Rs.3, 00 crores

 

 

Some of the above like Bennett Coleman, Yashraj, Enam & Parle Products have huge cash surplus and probability of them approaching the market is not very high. People Interactive & Samant Soma Wines IPO is a possibility within the next 12-18 months. LIC & Gujarat Co-op will require a change in their status, as one is a Co-operative  & LIC / BSNL will require Parliament approval.

 

Notwithstanding the above, whenever these companies do hit the IPO market, they should see huge investor interest & participation.

 
request views from everyone, jayendra
 
p.s have intentionally left out Hutch, Samsung, LG, Hyundai, Star - included only homegrown cos. 
If you buy for a non-value reason, you will end up selling for a non-value reason.
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basant
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Quote basant Replybullet Posted: 18/Jan/2007 at 9:30pm
The best part of these companies is that all of them have very strong brands. I think that within the sectors there is no styronger brand then LIC, ENAM,PARLE. What about BISLERI? This is also a generic name for mineral water in India.Ramesh Chauhan has the ability to create some really powerful brands, Thums UP, Frooti are  two of them that come instantly to mind.
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deveshkayal
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Quote deveshkayal Replybullet Posted: 19/Jan/2007 at 10:10pm
Two more to be added to this list.They r not strong brands but they r leader in their sector.
Serum Institute: Pune based Serum Institute of India dislodged erstwhile leader Biocon from the number one position in The BioSpectrum-ABLE Biotech Industry's annual ranking in 2006.Founded in 1966,The company manufactures life-saving immuno-biologicals at reasonable costs which range from anti-tetanus to Hepatitis to Measles,Mumps and Rubella vaccine.Today,Serum Institute is the worlds largest manufacturer of measles vaccine and DTP vaccine which r sold across 145 countries.
 
IFFCO: Indian Farmers Fertiliser Cooperative Ltd (IFFCO) has turnover of Rs 9943 crore, net profit of Rs 341 crore.Started in 1967,with 57 farmers its membership today stands at 37700 and it is already the biggest producer of fertiliser in Asia.
 
I dont know whether Genpact should be added to this or not because 60% stake is held by private equity firms General Atlantic and Oak Hill while rest 40% by GE Capital.
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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MuKeShHaRlAlKa
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Quote MuKeShHaRlAlKa Replybullet Posted: 09/Nov/2007 at 2:07pm
Some of the names that come to my mind are :

1. Karvy Stock Broking: Karvy is definetely one of the leading brokerage houses of India. It has the highest number of demat accounts and is registrar for most of the blue chips including RIL.

2. Mahanagar Gas : The largest supplier of gas in Mumbai. It has partnership with British Gas.

3. Kingfisher Airlines : The reputed name in the aviation sector. A part of the Vijay Mallya group and a leader of its sector

4. Bharat Hotels : one of the biggest players in the hotels and hospitality space space with sales of over 300 crore.

5. Vijai Electricals : One of the market leaders in the transformers space with sales of around 850 crores.
In Cricket & Stock Markets, everyone seems to be an expert but only a few really are.
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Quote pramodjain Replybullet Posted: 09/Nov/2007 at 10:59pm
one more is khadigram udhyag
"We simply attempt to be fearful when others are greedy, and greedy only when others are fearful."
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Quote MPD05 Replybullet Posted: 09/Nov/2007 at 11:26pm
If you also consider holding companies, one of the names at the top of the list would be Tata & Sons. 
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kg
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Quote kg Replybullet Posted: 09/Nov/2007 at 2:00am

after seeing the queue at haldriram , bhikharam and tewari ...i dont hv words

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Quote basant Replybullet Posted: 09/Nov/2007 at 9:12am
Originally posted by kg

after seeing the queue at haldriram , bhikharam and tewari ...i dont hv words

 
High margin, low capex, brands, moat, secular growth, pricing power. What else do we need?
 
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