- Decent overall growth.
- Weak revenue growth in recent years.
- PAT growth > EBIT growth > revenue growth.
Few days back, I shared my investment thesis for ITC.
Today, I want to share the detailed presentation.
Focus is on explaining & analyzing the ITC 'business' and not the divided opinions about its 'stock price'.
Thread 👇
@finbloggers @dmuthuk @FinMedium @ITCCorpCom
- Decent overall growth.
- Weak revenue growth in recent years.
- PAT growth > EBIT growth > revenue growth.
- NCA have almost tripled.
- Equity has almost quadrupled.
- Negligible debt / insignificant liabilities.
- CFO growth < PAT growth.
- CFO enough to cover both re-investments & dividend.
- Consistent re-investment & increasing shareholder payouts.
- ROCE/ROE near minimum but still healthy.
- Margins at decade highs.
- Asset utilizations at decade lows.
- Comfortable solvency, minimal leverage.
- Strong cash conversion.
Based on BCG matrix:
- Cash cow: Cigarettes
- Star: FMCG, Agriculture, Paper & Packaging
- Question Mark: IT
- Dog: Hotels
- Cigarettes: profit bedrock
- FMCG: highest asset allocation
- Agriculture: ~40% inter-segment revenue
- Hotels: too much capital, drag on profit
- Paper: 4th in revenue but 2nd in profit
- IT: decent standalone performance
- Cigarettes: stable
- FMCG: strong
- Agriculture: strong
- Paper: average
- Hotels: questionable
- IT: strong
Drivers: Integrated business model, FMCG business, e-Choupal, Cash generation.
Challenges: Sales growth, Cigarettes regulation
- Decent growth despite regulations
- Insane financial metrics (margins, ROA)
- Increasing illegal trade
- Depressed/declining volumes
- Unique product portfolio (leader or low competition)
- Decent growth
- Improvements expected in asset utilizations & margins
- Strong distribution
- Continuous new product launches
- Volatile growth & financial performance
- e-Choupal shifting from kiosks to mobile app
- Backward integration for FMCG
- Creating organized ecosystem for farmers
- Stable but low growth
- Decent financial performance
- Market leader
- Product innovation (bio-degradable board, recycled paper)
- Volatile & declining EBIT trend
- Low revenue growth vs asset growth
- Declining margins & low asset utilizations
- Catering to various segments
- Shift to asset-light model (can only evaluate impact after few years)
- Solid growth & improving financial performance
- Niche & differentiated offerings
- Partnerships with large industry players
- Can be good value addition to the group (similar to other conglomerates)
Please do your own research before making any investment decisions. Do not make any decisions based on this.
I'm invested so obviously biased.
If you found this helpful, please RT & follow for more investment research & analysis.
Watch the video here: https://t.co/auPvwEClxz
Link to presentation: https://t.co/fGN7em2STT
Thanks!
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First thread of the year because I have time during MCO. As requested, a thread on the gods and spirits of Malay folk religion. Some are indigenous, some are of Indian origin, some have Islamic
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
i wonder if you can make a thread bout witchcraft in malaysia.. or list of our own local gods/deites..
— r a y a \U0001f319 (@lcvelylilith) February 20, 2020
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Animist ceremonies of a religious or magical nature were normally held for the purpose of divination or making a request. This would either be done at a keramat or at a shrine similar to the Thai spirit houses or Chinese roadside shrines pic.twitter.com/I1hliyi0x3
— \u2745\u1710\u170b\u1713\u170e (@uglyluhan) June 16, 2019
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.
After removing the sandal paste,day long rituals & various abhishekam will be https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year
as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.
After removing the sandal paste,day long rituals & various abhishekam will be https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year
as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
