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tigershark
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Quote tigershark Replybullet Topic: market cap saturation
    Posted: 10/Mar/2011 at 6:27am
what are the various ways by which an investor knows that mkt cap saturation has been reached.topic open for discusion
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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tigershark
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Quote tigershark Replybullet Posted: 10/Mar/2011 at 6:28am
one imp criteria is when brand penetration is almost complete as in the case of HUL
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 10/Mar/2011 at 6:50am
When the market cap is greater than the size of the sector (overall topline of the sector)one can conclude there isnt much room left to grow.
Take your chances and keep them in a box until a quieter time.
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values
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Quote values Replybullet Posted: 10/Mar/2011 at 8:39am
Is there any substantive way of recognizing the size of a sector ? How to find that out...and if there are 2-3 companies (listed) in that sector do we take the sum of those market caps and decide that a saturation point has been reached and there is no more room to grow any further ? do we have any examples other than HUL ? Say may be in retail or , auto etc sectors

Originally posted by prabhakarkudva

When the market cap is greater than the size of the sector (overall topline of the sector)one can conclude there isnt much room left to grow.
Knowledge is power!
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basant
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Quote basant Replybullet Posted: 10/Mar/2011 at 8:46am
Originally posted by prabhakarkudva

When the market cap is greater than the size of the sector (overall topline of the sector)one can conclude there isnt much room left to grow.


This is the most important factor a few examples that come to mind are several FMCG companies, Asian Paints, TV18 was an important example from the past when the combined market cap reached Rs 5000 crores and the entire sector revenue was lower then that, All software companies reached that level in the late 1990s  but as they say it is very easy to be smart in hindsight.
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datta.supratik
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Quote datta.supratik Replybullet Posted: 10/Mar/2011 at 9:13am
Basantji,
 
How do we get the value of the entire sector revenue..I mean is there a direct data from some website or do we add up individual companies.
 
~Supratik
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Quote basant Replybullet Posted: 11/Mar/2011 at 12:45pm
No, you look at the sales of the top company in the sector and look for its market share then it becomes plain arithmetic.
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mmpcse
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Quote mmpcse Replybullet Posted: 12/Mar/2011 at 11:24am
Anyone tracking Jagan Lamps.
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