Subscription copy of [[email protected]]. Redistribution prohibited.

Subscription copy of [[email protected]]. Redistribution prohibited.

 Invest in

Mirae Asset
Small Cap Fund
An open ended equity scheme predominantly investing in small cap stocks

352'8&7/$%(//,1*
Mirae Asset Small cap Fund is suitable for investors Scheme Riskometer
0RG
HUDWH H
who are seeking* 0RG N
5LV
+LJK UDWHO\
5LV
N
VN

+
DW R
5L

LJ

‡ Long term capital appreciation

H U ZW
H

K
R G /R

5
LV
N

‡ Investment predominantly in equity and equity related

0

9HU\
5LVN

instruments of small cap companies

+LJK

*Investors should consult their financial advisors if they are not clear about 5,6.20(7(5
6FDQIRUSURGXFWGHWDLOV
the suitability of the product. 7KHULVNRIWKHVFKHPHLV9HU\+LJK DQGGLVFOLDPHU

Follow us on:

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Subscription copy of [[email protected]]. Redistribution prohibited.
 June 2025 Volume XVIII, Number 12

EDITORIAL POLICY
The goal of Wealth Insight, as with all
40 Cover Story

publications from Value Research, is

not just limited to generating profitable
ideas for its readers; but to also help
them in generating a few of their own.
We aim to bring independent, unbiased
and meticulously-researched stories
that will help you in taking better-
informed investment decisions,
encouraging you to indulge in a bit of
research on your own as well.
All our stories are backed by
quantitative data. To this, we add
rigorous qualitative research obtained
by speaking to a wide variety of
stakeholders. We firmly stick to our
belief of fundamental research and val-
ue-oriented approach as the best way
to earn wealth in the stock market.
Equally important to us is our unwaver-
ingly focus on long term planning.
Simplicity is the hallmark of our
style. Our writing style is simple and so
is the presentation of ideas, but that
should not be construed to mean that
we over-simplify.
Read, learn and earn – and let’s
grow and evolve as we undertake this
voyage together.

EDITOR-IN-CHIEF
Dhirendra Kumar

COPYEDITING
Harshita Singh and Khyati Simran

RESEARCH & ANALYSIS

Abhinav Goel, Aditya Gupta, Karthik Anand
Vijay, Kunal Bansal, Satyajit Sen, Sneha

20 36
Suri and Udhayaprakash
Words Worth Wisdom Interview
DESIGN
Aditya Roy, Aman Singhal, Anand Kumar,
Aprajita Anushree, Harish Kumar, Kamal The courage to Why CDMOs, hospitals
Kant, Mukul Ojha, Nitin Yadav and Sakshi be contrarian excite this fund manager
COVER DESIGN Why being a Chirag Dagli
Aman Singhal contrarian is Fund Manager at
DATA SOURCE FOR STOCKS not just about DSP Mutual Fund
AceEquity what you buy,
but who you
MARKETING
are when you
Aastha Tiwari and Ashish Jain
buy it
PRODUCTION MANAGER & CIRCULATION
Hira Lal +91-9958058407

ADVERTISING
Venkat K Naidu +91-9664048666
Biswa Ranjan Palo +91-9664075875

CUSTOMER SUPPORT
Email: [email protected]
Phone: +91-9999322422

EMAIL [email protected]

4 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 

Contents

26 Market Compass
Q Promoter stake shake-up
Q Pledging tracker
Q Institutional moves

29 Go global without
ABCD ETF
49 Straight Talk
by ANAND TANDON
7 First Page
by DHIRENDRA KUMAR the hassle How Trump is reviving
The hidden Nixon’s 1971 shock therapy
What Nixon did with gold, Trump
compounding engine
Exploring the factors that
influence the P/E multiple
30 Analyst’s Diary
Q A boring investment with
may do with trade. The global world
order might be in for a reset again.
big rewards
Q Building moats that matter

8 Buzz of the month

Market Reporter Q Is Ather the better EV

poster child?

12 Breaking the
Stock Story

airline curse 56 Stock Advisor

by DHIRENDRA KUMAR
How IndiGo emerged as a Round numbers,
rare success story in a rough roads
tough industry
54 Gold and silver ETFs surge:
Index Investor Real investors know the real game is
played quietly, steadily and over time
What investors must know
14 The most significant
Big Moves

price movements 62 Stock Screen

Blue chips and quality
stocks at bargain

18 Trends and trails

Market Barometer

66 Wordsworth Now
Charts to understand current
market valuations and returns
Quotable words from
prominent figures
58 Everyday Economics
by PUJA MEHRA
The digital shift powering
small business recovery
Technology is empowering small
‹9DOXH5HVHDUFK,QGLD3YW/WG firms but policy barriers limit
Wealth Insight is owned by Value Research India Pvt. Ltd., 5, Commercial Complex, Chitra Vihar, Delhi 110 092. the gains
Editor-In-Chief: Dhirendra Kumar. Printed and published by Dhirendra Kumar on behalf of Value Research India
Pvt. Ltd. Published at 5, Commercial Complex, Chitra Vihar, Delhi 110 092. Printed at Option Printofast, 46, Patparganj
Industrial Area, Delhi-110092
Total pages 68, including cover

',6&/$,0(5
The contents of Wealth Insight published by Value Research India Private Limited (the ‘Magazine’) are not intended to serve as professional advice or guidance and
the Magazine takes no responsibility or liability, express or implied, whatsoever for any investment decisions made or taken by the readers of this Magazine based on
its contents thereof. You are strongly advised to verify the contents before taking any investment or other decision based on the contents of this Magazine. The
Magazine is meant for general reading purposes only and is not meant to serve as a professional guide for investors. The readers of this Magazine should exercise
due caution and/or seek independent professional advice before entering into any commercial or business relationship or making any investment decision or entering
into any financial obligation based on any information, statement or opinion which is contained, provided or expressed in this Magazine.
The Magazine contains information, statements, opinions, statistics and materials that have been obtained from sources believed to be reliable and the
publishers of the Magazine have made best efforts to avoid any errors and omissions, however the publishers of this Magazine make no guarantees and
60 Investment Acorns
by AASHISH P SOMAIYAA
warranties whatsoever, express or implied, regarding the timeliness, completeness, accuracy, adequacy, fullness, functionality and/or reliability of the information,
statistics, statements, opinions and materials contained and/or expressed in this Magazine or of the results obtained, direct or consequential, from the use of such
A bend in the road
information, statistics, statements, opinions and materials. The publishers of this Magazine do not certify and/or endorse any opinions contained, provided, The nature of markets:
published or expressed in this Magazine.Reproduction of this publication in any form or by any means whatsoever without prior written permission of the publishers
of this Magazine is strictly prohibited. All disputes shall be subject to the jurisdiction of Delhi courts only. ALL RIGHTS RESERVED Predictably unpredictable

June 2025 Wealth Insight 5

Subscription copy of [[email protected]]. Redistribution prohibited.
 6FDQ+HUH7R,QYHVW1RZ

,QYHVWLQJLQWKH)XWXUH

1XUWXULQJ'UHDPV

/,&0)

9 /8()81'


ŶŽƉĞŶĞŶĚĞĚĞƋƵŝƚLJƐĐŚĞŵĞĨŽůůŽǁŝŶŐǀĂůƵĞŝŶǀĞƐƚŵĞŶƚƐƚƌĂƚĞŐLJ
 (UVWZKLOH/,&0)/RQJ7HUP9DOXH)XQG

0RGHUDWH5LVN 0RGHUDWHO\+LJK5LVN 7KLVSURGXFWLVVXLWDEOHIRULQYHVWRUVZKRDUHVHHNLQJ 

/RZWR0RGHUDWH5LVN +LJK5LVN
y /RQJWHUPFDSLWDODSSUHFLDWLRQ
y ,QYHVWPHQWLQHTXLW\DQGHTXLW\UHODWHGLQVWUXPHQWVE\IROORZLQJYDOXHLQYHVWPHQW
VWUDWHJ\
/RZ5LVN 9HU\+LJK5LVN

y 5LVN9HU\+LJK
5,6.20(7(5
,QYHVWRUV VKRXOG FRQVXOW WKHLU ILQDQFLDO DGYLVHUV LI LQ GRXEW DERXW ZKHWKHU WKH SURGXFW LV VXLWDEOH IRU WKHP
7KH FKDQJH LQ 5LVNRPHWHU ZLOO EH HYDOXDWHG RQ D PRQWKO\ EDVLV )RU 6FKHPH UHODWHG GHWDLOV LQFOXGLQJ XSGDWLRQ LQ
7KHULVNRIWKHVFKHPHLV9HU\+LJK 5LVNRPHWHU LIDQ\ PD\SOHDVHEHUHIHUUHGRQRXUZHEVLWHZZZOLFPIFRP

7RNQRZPRUHSOHDVHFRQVXOW\RXU)LQDQFLDO$GYLVHU 25 &DOO7ROO)UHH 

0XWXDOIXQGLQYHVWPHQWVDUHVXEMHFWWRPDUNHWULVNVUHDGDOOVFKHPHUHODWHGGRFXPHQWVFDUHIXOO\
Subscription copy of [[email protected]]. Redistribution prohibited.
 by Dhirendra Kumar
FIRST PAGE

The hidden
compounding engine
X Exploring the factors that It also resolves the eternal debate about whether
high P/E ratios necessarily indicate overvaluation.
influence the P/E multiple The matrix in our cover story shows why not all high

A
t its core, investing is about solving a P/Es are equal—a firm earning 25 per cent ROCE and
deceptively simple puzzle: finding businesses reinvesting 90 per cent rightly commands a premium
that can grow consistently for years while that average businesses can’t justify.
ensuring you don’t overpay for that growth. Yet for all Critics might argue this approach demands too
the complex models and valuation frameworks that much crystal-ball gazing – projecting returns and
populate investment textbooks, surprisingly few reinvestment rates a decade forward seems
connect these two essential elements elegantly. ambitious. Yet that’s precisely what makes it valuable.
This month’s cover story delves into the most By forcing investors to articulate their assumptions
illuminating equation in investing – one that explicitly, it brings discipline to what would otherwise
combines both ROCE and reinvestment rate into one. be purely sentiment-driven decisions. The method
After all, in the long run, these two are at the core of doesn’t eliminate uncertainty but makes it transparent
any compounding machine and quantifiable. When we make these projections,
The beauty of this equation is its clarity: just like a we’re not merely guessing – we’re examining
Formula 1 car needs both engine power and competitive advantages, management capability and
aerodynamics, great investments need high returns industry structures that determine whether a
and smart reinvestment. Without both, growth stalls. company can sustain superior returns while finding
The best wealth creators strike this balance perfectly – meaningful places to deploy capital. This demands a
generating high returns on their capital while finding depth of business analysis that superficial metrics
substantial opportunities to reinvest at those like P/E ratios alone never require.
attractive rates. For thoughtful investors, our cover story offers
Many investors focus on just one side of the more than just a valuation tool – it’s a way to judge
equation – value seekers chase high returns, while how wisely leaders deploy capital. The best business
growth fans applaud reinvestment, often ignoring leaders avoid return-diluting bets and double down
the other half. Both miss the fundamental insight: where returns stay high. Aligning with this mindset
it’s the product of these factors, not either one helps us back businesses that truly compound wealth
alone, that drives wealth creation. One is the soil, over time—not just drift with the market.
the other is the tree. Before chasing a story or fearing a high multiple,
This framework is particularly valuable in today’s look under the hood. Sometimes, a bargain appears
market because it cuts through narrative-driven expensive when viewed through the right analytical
investing. Rather than being seduced by stories about framework. Other times, value traps become obvious
addressable markets or disruption potential, this when you recognise the mismatch between their
approach grounds valuation in mathematics. It forces returns and reinvestment opportunities. True value
us to ask the essential questions: How efficiently does lies in how well a company balances returns and
this business convert capital into earnings? How reinvestment – not just in the price tag.
much of those earnings can be productively
redeployed? And most critically, what price makes
sense given the answers?

June 2025 Wealth Insight 7

Subscription copy of [[email protected]]. Redistribution prohibited.
 MARKET REPORTER

Gold hits `1 lakh-mark for the first time ever Tata Motors gets
Gold prices made a new record, hitting `1 lakh per 10 grams in late shareholders’ nod to
April amid global economic uncertainty, a weaker US dollar and spin off CV business
geopolitical tensions. Central bank buying and the Tata Motors secured 99.9 per cent
Akshaya Tritiya festival also boosted demand. By of shareholder approval to
mid-May, prices corrected about 7 per cent to demerge its commercial vehicle
`97,000 as international tensions eased and business into a separate listed
investor demand stabilised. The milestone company TML Commercial
has sparked renewed retail interest in gold. Vehicles, while passenger
vehicles, EVs and Jaguar Land
Rover will remain with Tata
IDFC First Bank Motors. Shareholders will get one
share in each company for every
shareholders reject share held in Tata Motors. The
Warburg Pincus demerger is expected to be
board nomination completed by October 1, 2025.
proposal
IDFC First Bank shareholders
rejected a proposal to grant board
Japan’s SMBC to nomination rights to Currant Sea
acquire 20 per cent Investments BV, an affiliate of
Warburg Pincus. The resolution
stake in Yes Bank
for $1.58 billion
received 64 per cent approval, US-China agree on
below the 75 per cent needed. 90-day tariff
Japan’s Sumitomo Mitsui Institutional investors largely
Banking Corporation (SMBC) opposed the move while retail
reduction truce
will buy a 20 per cent stake in investors supported it. This The US and China agreed to a
Yes Bank for `13,483 crore follows Warburg Pincus’s 90-day truce last month in
($1.58 billion). The deal involves `4,876 crore investment for a Geneva, cutting US tariffs on
buying State Bank of India’s 9.48 per cent stake in the bank as Chinese goods from 145 to
13.19 per cent stake in Yes Bank part of a `7,500 crore joint deal 30 per cent and China’s tariffs
and 6.81 per cent from other with ADIA. on US imports from 125 to
lenders. This marks the largest 10 per cent. China also lifted its
cross-border investment in Boeing ban and suspended non-
India’s banking sector. SMBC tariff measures. However, tensions
aims to boost Yes Bank’s rose after the US targeted
corporate and digital banking Huawei’s Ascend chips, with
growth. Regulatory approvals are Beijing accusing Washington of
expected by September 2025. violating the agreement’s spirit.

Supreme Court rejects Vodafone Idea’s plea to

waive AGR dues
The Supreme Court dismissed Vodafone Idea’s plea to waive over `45,000 crore in
AGR dues, calling it ‘misconceived’ The telecom giant warned it may not survive
beyond FY26 without relief. Despite multiple fundraises, including the government
increasing its stake to 49 per cent via equity conversion, Vodafone Idea continues to
struggle financially. Former chairman Kumar Mangalam Birla resigned in 2021,
offering his stake to the government.

8 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Adani Group, Zoho halt major semiconductor projects
India’s semiconductor goals have faced setbacks as the Adani Group paused its
$10 billion joint venture with Israel’s Tower Semiconductor over weak domestic demand
and funding issues. Zoho Corporation, a Chennai-based SaaS leader, also suspended its
$700 million chipmaking plan due to trouble finding a technology partner. These
cancellations underscore the difficulties India faces in establishing a competitive
semiconductor manufacturing ecosystem and attracting necessary investments.

Supreme Court Defence stocks

scraps JSW Steel’s skyrocket after
Bhushan Power Operation Sindoor
acquisition After India’s Operation Sindoor in
The Supreme Court annulled JSW May 2025, defence stocks rallied
Steel’s `19,350 crore acquisition sharply, adding `1.8 lakh crore in
market capitalisation. Firms like
Singtel cuts stake of Bhushan Power and Steel,
IdeaForge, Cochin Shipyard and
citing procedural lapses under
in Bharti Airtel; the Insolvency and Bankruptcy Garden Reach Shipbuilders
Airtel-Tata Play DTH Code. It ordered Bhushan Power’s rallied up to 56 per cent. The
merger called off liquidation and mandated JSW Nifty India Defence index rose
Singtel divested a 1.2 per cent Steel to return payments to nearly 13 per cent, outpacing
stake in Bharti Airtel for creditors within two months. The the broader market. The
`13,180 crore ($1.54 billion), ruling raises concerns over surge reflects investor
reducing its holding to India’s insolvency process and confidence in India’s
28.3 per cent. The shares were investor confidence. The indigenous defence strength
bought by Indian and global government is reviewing the and expectations of increased
institutional investors, decision to decide further action. domestic and export orders.
including mutual funds. In a
separate development, Bharti
Airtel and the Tata Group called
off merger talks between their
DTH businesses, Airtel Digital
TV and Tata Play, after failing
to agree on terms.
Ather Energy makes
muted D-Street debut
IndusInd Bank reports fresh accounting error Two-wheeler EV player Ather
amid SEBI insider trading probe Energy made a muted debut on
exchanges on May 6, 2025,
IndusInd Bank revealed a misstatement in its
listing at `328 on the NSE, just
microfinance division where `674 crore was incorrectly
2.18 per cent above its issue
recorded as interest income over three quarters of
price. Its `2,981 crore IPO
FY25. This follows a prior `1,960 crore derivatives
was subscribed 1.43 times.
accounting error that led to top executive resignations.
Its Q4 FY25 revenue rose
Meanwhile, SEBI is investigating six bank officials for
29 per cent to `676 crore, while
possible insider trading related to undisclosed lapses.
net losses narrowed 17 per cent
The probe focuses on whether they sold stock options
to `234 crore. Adjusted gross
while being aware about the accounting irregularities.
margin improved to 18 per cent.

June 2025 Wealth Insight 9

Subscription copy of [[email protected]]. Redistribution prohibited.
 MARKET REPORTER

Asian Paints reports worst quarterly ECONOMIC METRICS

profit drop in 20 years
In Q4 FY25, Asian Paints’ consolidated net profit fell 45 per cent YoY, its GST collection
steepest quarterly drop in over 20 years. Revenue 240 In ` '000 cr
declined 4.3 per cent due to weak urban demand 180
and strong competition from Grasim’s Birla Opus.
120
A one-time `183 crore loss from selling Indonesian
operations added to the pressure. Despite an 60
1.8 per cent volume growth in decorative paints, 0
margins suffered from an adverse product mix. Apr '23 Apr '25

Inflation: Consumer Price

Lumax Auto to buy India-UK sign 8.0 % change YoY
remaining stake landmark FTA to
6.5
in IAC India for boost bilateral trade
`221 crore On May 6, 2025, India and the
5.0

UK signed a Free Trade 3.5

Lumax Auto Technologies
will acquire the remaining Agreement (FTA) ending tariffs 2.0
25 per cent stake in IAC on 99 per cent of Indian Apr '23 Apr '25

International Automotive exports to the UK and reducing

India for `221 crore from duties on 90 per cent of UK
goods entering India. Key Index of Industrial Production
the IAC Group, making the
latter its wholly-owned sectors like textiles, gems, 15 % change YoY

subsidiary. The deal is whisky and automobiles are 10

expected to close by set to benefit. Bilateral trade is
5
May 31, 2025. IAC India expected to grow 15 per cent
supplies plastic interiors to annually, potentially doubling 0

OEMs like Mahindra and to $120 billion by 2030. -5

Maruti Suzuki. Lumax plans to Mar '23 Mar '25
merge IAC India to boost
synergies and strengthen its
EV interior market presence. `vs $
80 Inverted scale

82

84

86

88
May '23 May '25

Buffett ends six-decade reign at Berkshire,

Crude oil
passes baton to Greg Abel
100 Brent $/barrel
Investing legend Warren Buffett, 94, will step down as CEO of Berkshire
Hathaway at the end of 2025, closing a six-decade reign that built the 90

company into a $1.1 trillion giant. Citing waning energy, Buffett praised 80
his successor, Greg Abel, 62, for greater operational vigour. Abel,
70
Berkshire’s vice chairman since 2018, takes over on January 1, 2026, with
Buffett staying on as chairman to oversee the transition. 60
May '23 May '25

10 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 INVESTING UNDER
INFLUENCE?
Letting influencers dictate your investment
decisions is a serious mistake.

Don’t follow stock tips, advice,

or tall promises, as this may lead
to major financial losses.
Smart investors always do their
own research before investing.

Report such practices

to us on [email protected] or
call us on 1800 266 0050

Visit: www.nseindia.com/invest/be-a-smart-investor
FO L LO W U S O N
nseindia.com
or scan the QR code.

Subscription copy of [[email protected]]. Redistribution prohibited.

 STOCK STORY

Breaking the airline curse

How IndiGo emerged as a rare success story in a tough industry

T
he airline business is later transformed it into a new startup airline. But this scale came
notorious for destroying venture called InterGlobe with benefits. IndiGo could
shareholder value. High Enterprises, which established negotiate better pricing with Airbus
fixed costs, volatile fuel prices, numerous global partnerships with and secure favourable lease terms
intense competition and regulatory airlines and hotels. In 2004, he through a sale-and- leaseback
pressures leave most airlines launched InterGlobe Aviation, which model, enabling it to free up
perpetually struggling to stay secured an airline license and thus, capital, optimise its operations and
afloat. Yet, amid this challenging the brand ‘IndiGo’ was born. achieve faster expansion.
landscape, one Indian carrier has Within a year, the company
defied the odds and built a placed an order for 100 Airbus The competitive
consistently profitable franchise: A320 aircrafts, a move advantage
InterGlobe Aviation, parent of considered unusually Airline companies
low-cost airline IndiGo. bold for a typically incur
significant fixed costs
The beginnings per flight. IndiGo has
Rahul Bhatia joined his consistently operated as a
father’s air travel low-cost carrier, maintaining a
business in 1984. He sharp focus on cost control

Winds of change
New generation aircraft Old generation aircraft 283
147 205 220 237
95 84
115 80 55 67
26 52 122
16 107
91 105

FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

IndiGo Sensex (rebased to stock price)

Sep 30, 2019
`1,892

Nov 10, 2015

`878

Oct 9, 2018
`724

Mar 2016 Dec 2018 Sep 2019 Dec 2019

Becomes the first Becomes the Enters the Chinese Becomes India’s first
airline in Asia to first Indian airline market by launching airline to operate
operate the new Airbus to operate a fleet daily flights from over 1,500 flights in a
A320neo aircraft of 200 planes Delhi to Chengdu single day

12 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Revenue and profit after tax EBITDAR and EBITDAR margin
`75,000 cr Revenue PAT `12,000 cr `25,000 cr EBITDAR EBITDAR Margin (%) 35

60,000 8,000 20,000 28

15,000 21
45,000 4,000
10,000 14
30,000 0
5,000 7
15,000 -4,000
0 0
0 -8,000 FY18 FY19 FY20 FY21 FY22 FY23 FY24
FY16 FY18 FY20 FY22 FY24 *Earnings before interest, tax, depreciation, amortisation and engine rental

despite the volatility in fuel prices. while Jet Airways and SpiceJet were Domestic market share (%)
A key factor in IndiGo’s cost posting steep losses of `2,097 crore IndiGo Others
efficiency is its reliance on a and `687 crore respectively, IndiGo 100
single aircraft type—the Airbus reported a profit of `1,300 crore.
A320. This strategy simplifies 75
maintenance and operational The road ahead
processes, leading to further cost Today, IndiGo is dominating 50
savings. In 2016, Indigo became Indian skies with over 65 per cent
25
one of the first airlines in the domestic market share. But it isn’t
world to operate the Airbus stopping there. The airline has
0
A320neo, a fuel-efficient aircraft. placed orders for 925 aircrafts,
FY16 FY25
These cost advantages translated scheduled for delivery by
into consistently competitive fares. 2035. It’s also gearing up for Apr 30, 2025
And lower fares meant higher international expansion with `5,244
passenger loads. Over time, this aircrafts like the Airbus A321XLR
created a self-reinforcing loop: and A350, which will enable
Lower costs led to lower prices, mid-and long-haul operations.
which drove higher occupancy, By Abhinav Goel
which, in turn, improved margins.
This discipline paid off. In FY15, Nov 13, 2024
`3,850

2,738

Jun 20, 2022

`1,549

Jan 2023 Jun 2023 Dec 2023

Becomes India’s first Places Airbus’ largest Becomes the first Indian
carrier to reach a ever purchase order airline to carry over 100
fleet size of over of 500 A320 million passengers in a
300 active aircrafts Family aircrafts calendar year

June 2025 Wealth Insight 13

Subscription copy of [[email protected]]. Redistribution prohibited.
 BIG MOVES

Large caps
3M TTM Rev. TTM PAT 3Y EPS 3Y avg.
Stock returns growth growth growth ROE
Industry Rating (%) P/E (% YoY) (% YoY) (% pa) (%)

Top 10 by returns

Solar Industries Explosives  54.9 110.7 9.5 37.2 45.5 30.5

Hitachi Energy Electrical Machinery  48.4 194.4 21.9 134.4 31.7 -

BSE Exchange Serv.  43.5 75.0 114.6 199.3 73.3 15.2

Mazagon Dock Shipbuilding  42.2 45.2 34.6 76.7 57.0 28.4

Bharat Electronics Defence & Aerospace  37.7 50.4 27.5 40.5 24.1 23.7

Coromandel Fertilisers  37.6 34.3 9.2 11.9 10.4 24.4

Hindustan Aero Defence & Aerospace  35.8 38.1 2.0 9.5 18.1 28.5

Waaree Energies Renewable Energy Equip. Unrated 33.9 43.3 172.2 322.1 171.0 31.9

Interglobe Aviation Air Transport  29.2 34.6 17.2 -15.4 45.5 -

Adani Ports Marine Port Serv.  29.0 26.7 16.4 25.4 28.8 1.6

Bottom 10 by returns

Siemens Div. Manufacturing  -39.7 41.1 5.2 -3.7 35.3 15.3

Indian Overseas Bank Banks - Div.  -18.6 2.6* 16.9 27.4 24.7 10.2

Wipro Software & Serv. - Div.  -17.9 20.2 -0.7 18.5 4.0 18.6

Vodafone Idea Telecom Serv. - Div. Unrated -15.0 - 1.4 8.5 15.8 -

Infosys Software & Serv. - Div.  -14.2 24.8 6.1 1.9 7.0 34.0

Tata Consultancy Services Software & Serv. - Div.  -9.8 26.5 6.0 4.3 8.9 50.4

Dabur India Household & Personal - Div.  -9.8 47.0 1.3 -4.0 0.5 24.1

Swiggy Online Serv. Unrated -9.7 - 158.9 -147.5 25.9 -

LTIMindtree IT Serv. & Consulting  -8.6 32.5 7.0 0.4 -0.7 25.7

Oracle Financial Financial Tech.  -5.0 31.1 7.4 7.2 7.8 32.5

*Price-to-book ratio. Our large-cap universe has 144 large companies, making the top 70 per cent of the total market cap. The above list mentions stocks
that fluctuated the most in the last three months. Profit after tax (PAT) adjusted for exceptional items and discontinued operations. Data as of May 14, 2025.

14 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Subscription copy of [[email protected]]. Redistribution prohibited.
 BIG MOVES

Mid caps
3M TTM Rev. TTM PAT 3Y EPS 3Y avg.
Stock returns growth growth growth ROE
Industry Rating (%) P/E (% YoY) (% YoY) (% pa) (%)

Top 10 by returns

Garden Reach Shipbuilders Shipbuilding  62.2 47.6 41.3 47.6 40.7 18.7

Force Motors Commercial Vehicles  60.4 17.1 15.4 30.4 121.0 7.7

Bharat Dynamics Defence & Aerospace Div.  60.3 114.4 4.7 18.7 -5.3 15.7

JSW Holdings NBFC - Div.  59.0 122.1 47.1 50.2 10.0 1.0

Data Patterns (India) Defence & Aerospace Div.  58.2 79.6 -5.4 7.8 60.3 17.6

Kaynes Technology India IT Serv. & Consulting  57.9 156.6 55.0 80.4 35.8 16.0

Paradeep Phosphates Fertilisers  50.5 22.7 19.4 456.7 -0.7 11.0

Ceat Tyres & Tubes  50.1 33.4 10.7 -28.2 87.9 8.7

Godfrey Phillips India Tobacco Products  49.9 46.3 21.7 26.1 32.8 20.8

Godrej Industries Div. Manufacturing  45.9 81.0 9.2 143.0 5.8 -0.3

Bottom 10 by returns

Punjab & Sind Bank Corporate Banks  -30.6 21.0 18.4 70.6 -12.7 8.0

TBO Tek Travel & Tourism  -26.4 59.4 27.2 14.8 99.3 38.0

Embassy Developments Real Estate Dev.  -23.9 - 86.2 55.9 -337.9 -20.5

IndusInd Bank Banks - Div.  -23.7 0.9* 15.3 -16.4 18.5 13.4

Central Bank Of India Banks - Div.  -22.8 1.0* 9.6 48.2 53.5 7.1

Blue Star Heating & Cooling Systems  -20.7 54.2 23.6 41.1 48.9 21.6

UCO Bank Corporate Banks  -20.3 1.4* 14.7 47.8 37.4 6.8

Anant Raj Real Estate Dev.  -17.2 37.1 38.9 59.3 86.5 3.5

Vedant Fashions Apparel & Acc. Retail  -16.9 45.8 1.4 -6.2 8.0 30.2

Brainbees Solutions Apparels & Footwear - Div. Unrated -16.3 - 161.8 16.1 -203.8 -9.7

*Price-to-book ratio. Our mid-cap universe has 315 mid-cap companies, making the next 20 per cent of the total market cap. The above list mentions stocks
that fluctuated the most in the last three months. Profit after tax (PAT) adjusted for exceptional items and discontinued operations. Data as of May 14, 2025.

16 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 Small caps
3M TTM Rev. TTM PAT 3Y EPS 3Y avg.
Stock returns growth growth growth ROE
Industry Rating (%) P/E (% YoY) (% YoY) (% pa) (%)

Top 10 by returns

NACL Industries Pesticides  225.8 - -22.4 -196.6 -189.5 9.3

Kothari Industrial Corp Div. Others  168.4 - 345.7 547.0 -469.8 -

Colab Platforms Inv. Management - Div.  157.6 680.2 2347.7 11.5 214.6 6.5

Vadilal Industries Dairy Products  96.1 33.8 7.5 6.0 58.0 28.1

Elitecon International Div. Trading Unrated 96.0 222.5 1268.5 156.8 204.5 4.1

Krishana Phoschem Div. Chemicals  95.2 25.4 47.0 113.8 39.8 14.0

Vadilal Enterprises Dairy Products  74.5 207.8 8.3 -27.1 8.2 58.8

Faze Three Home Furnishing  70.6 46.3 18.7 -38.8 -9.9 20.8

Baazar Style Retail Apparel & Acc. Retail Unrated 69.5 163.0 38.1 1.2 45.0 2.3

Panacea Biotec Branded Medicines  67.9 - 2.1 66.5 25.2 -14.3

Bottom 10 by returns

Suratwwala Business Group Real Estate Dev.  -62.5 67.3 -42.8 -52.3 -23.4 -

Raymond Miscellaneous Textiles  -59.9 0.5 85.1 -447.5 208.4 6.7

Ashika Credit Capital NBFC - Div.  -46.1 - 39.5 -580.7 -243.1 11.6

Polo Queen Industrial Div. Trading  -42.5 689.0 43.9 101.8 50.6 1.0

Eraaya Lifespaces Bicycles Unrated -40.1 - 142.9 2039.6 -367.8 1.8

Vakrangee Software  -40.0 163.2 20.0 60.9 -56.9 1.5

Quess Corp Business Serv. - Div.  -39.7 14.8 10.6 73.7 52.1 10.2

Blue Cloud Softech Solutions Software Unrated -36.4 20.1 160.1 389.1 229.0 7.2

Veritas (India) Div. Trading  -34.3 7.6 28.9 -27.5 6.7 5.7

Tembo Global Industries Aluminium Products  -31.9 18.4 45.5 217.1 165.9 20.7

Our small-cap universe (minimum m-cap of `650 crore) has 1,168 small-cap companies, making the bottom 10 per cent of the total market cap. The above list
mentions stocks that fluctuated the most in the last three months. PAT adjusted for exceptional items and discontinued operations. Data as of May 14, 2025.

June 2025 Wealth Insight 17

Subscription copy of [[email protected]]. Redistribution prohibited.
 MARKET BAROMETER

Trends and trails

Charts to help you make sense of the current market in terms of
valuations and return potential
z Max Current z Median z Min

Sensex’s 10-year journey

1,00,000 z The Sensex is a reliable gauge of the Indian
market’s overall performance.
84,300
80,000 z The 10-year graph shows a secular market rally,
81,331
interrupted by several bearish phases.
60,000 z Key setbacks include: Chinese growth concerns
(2015), demonetisation (2016), US–China trade
tensions (2018) and the Covid-19 crash
40,000
(March 2020).
z After a strong recovery post-March 2020, the
20,000 23,002
markets dipped due to the Russian-Ukraine
conflict and rising interest rates.
0 z After touching new lifetime highs in 2024,
May '15 May '25 Sensex is now stuck in a consolidation phase.

Sensex price-to-earnings ratio

40 The price-to-earnings (P/E) ratio of the
Sensex is a straightforward indicator of market
35 35.1 valuation. Here’s a general valuation guide:

Deeply Significantly
30 undervalued Fairly overvalued
(attractive buy) valued (high-risk zone)
25
22.5 P/E
12 16 20 24
20 23.5
Undervalued Overvalued
17.5
15
This chart uses standalone data for Sensex
May '15 May '25 companies. If consolidated figures are
considered, the P/E ratio would likely be lower.

Sensex price-to-book ratio

4.5
The price-to-book (P/B) ratio reflects what
4.21 investors are willing to pay for each rupee
4.0 4.16 of net assets. With book value being more
stable than earnings, it’s often considered
a better valuation measure than P/E.
3.5
If:
P/B > Median P/B = Overvalued
3.0
P/B < Median P/B = Undervalued
3.11
2.5
2.36
2.0
May '15 May '25

18 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Sensex dividend yield
1.6 %
Dividend yield represents the return an
1.52 investor earns through dividends. It’s
calculated as dividend per share divided
1.4
by price per share. Typically, higher
1.20 dividend yields indicate cheaper stock
prices.
1.2
If:
1.09 Dividend yield < Median dividend yield
1.0 = Overvalued
Dividend yield > Median dividend yield
= Undervalued
0.8

0.72
0.6
May '15 May '25

Market cap-to-GDP
150%
The market cap-to-GDP ratio is Warren
Buffett’s favourite valuation metric, calling
131
it ‘the best measure of market valuations
120 131 at any given moment.’

100 If:
90 Market cap > GDP = Overvalued
Market cap < GDP = Undervalued
Considering the cumulative market cap of
60 BSE-listed companies and the nominal GDP
57
estimates: final for FY23, first revised for
FY24 and second advanced for FY25.
30

0
FY12 FY14 FY16 FY18 FY20 FY22 FY24 FY26

10Y G-sec yield gap to Sensex earnings yield

4.5% The spread between the 10-year
government bond yield and Sensex
3.87 earnings yield (inverse of P/E) is a
3.6
key valuation metric.
A significant deviation from the median
indicates the degree of the Sensex’s
2.7
overvaluation or undervaluation.
If:
2.83
1.91 Spread > Median = Overvalued
1.8
Spread < Median = Undervalued

All data as of May 14, 2025

0.9 0.79

0
May '15 May '25

June 2025 Wealth Insight 19

Subscription copy of [[email protected]]. Redistribution prohibited.
WORDS WORTH WISDOM

The courage to
be contrarian
Why being a contrarian is not just
about what you buy, but who you
are when you buy it

W
hen markets nosedive, a familiar piece of
advice echoes through trading desks and
investment WhatsApp groups alike—’Buy
the dip’. But what does that really mean? More
importantly, who should be buying the dip? New York
University Professor Aswath Damodaran
tried to answer these questions in his
most recent blog post on contrarian
investing—a philosophy rooted in going
against the crowd.
Damodaran outlines four distinct strands of
contrarianism and explains each of their
mechanisms and involved risks. He also reveals the
approach he likes the best and highlights why being a
contrarian is really about one’s psychological
makeup, beyond just investing frameworks.

Knee-jerk contrarianism: A facile strategy

The most impulsive form of contrarianism is also the
most widely practiced: Knee-jerk contrarianism.
Here, you buy whatever has dropped on the
assumption that they will bounce. back It’s a
strategy built on faith in mean reversion—
the idea that what falls must
Illustrations: ANAND
eventually rise.
Historical data on
equities, especially in
the US, appears to

Subscription copy of [[email protected]]. Redistribution prohibited.

support this. As Damodaran notes, “stocks Constrained contrarianism:
deliver the highest returns of all asset Filtering the fall
classes” particularly when purchased Constrained contrarians are value investors
after a fall. A 1985 study by DeBondt and at heart. They begin with stocks that have
Thaler found that so-called ‘loser’ fallen—but only buy those that also meet
portfolios—stocks that had dropped most in the rigorous quality criteria. The goal is simple: avoid
previous three years—outperformed ‘winners’ in the value traps, where cheap stocks continue to slide
years that followed. because they deserved to be cheap in the first place.
But there’s a catch. Later research by Jegadeesh To test this approach, Damodaran uses a three-
and Titman showed that winner stocks actually pronged screen:
continued to outperform losers in the short term. z A P/E ratio below 15 times
Momentum often overpowers reversion—at least for a z A dividend yield above 1 per cent
while. And when downturns are driven by real z A net debt-to-EBITDA ratio below 2 times
economic or structural damage, buying the dip is like Damodaran acknowledges that adding quality filters
trying to catch a falling knife. “With individual stocks, improves returns, especially for stocks that look cheap
the danger gets multiplied,” warns Damodaran. based on traditional value measures like low price-to-
“Investors buy into companies being sold off for book. But he offers a critical caveat: “the evidence is
legitimate reasons—like broken business models or underwhelming in terms of payoff, at least on an
financial distress—and wait for a correction (price annual return basis, though the payoff is greater if you
increase) that never comes.” factor in volatility and estimate Sharpe ratios (excess
return per unit of risk taken).”
Technical contrarianism: When In other words, quality screens may not dramatically
charts call the shots boost yearly gains, but they can improve the
Another approach is technical risk-adjusted return—a more meaningful metric for
contrarianism where investors use price long-term investors trying to minimise drawdowns
charts and technical indicators to determine and avoid capital destruction.
when a downturn has bottomed out. Rather than Still, this method is not foolproof. “The problem
blindly buying what’s fallen, they wait for a signal— with these screens,” Damodaran warns, “is that
moving averages, RSI levels or spikes in volatility—that they are based upon historical data and do not
sentiment is turning. capture structural changes in the economy or
Damodaran is cautiously receptive to this disruption in the industry.”
approach. “Charting patterns and technical indicators A company might pass all the screens but still be
can provide signals of shifts in mood and operating in a business model facing long-term
momentum,” he says, especially in the short term. decline or technological obsolescence. That’s why
Academic research has shown that patterns like constrained contrarianism should be seen not as a
double tops and head-and-shoulders do recur, albeit guarantee of success but as a defense mechanism—a
with “marginal incremental returns.” way to reduce the odds of error, not eliminate them.
But he also notes the difficulty in relying on such
tools. There’s no universal agreement Opportunistic contrarianism:
among technical analysts on which Patience with purpose
signals work best, and even when they The most deliberate and high-conviction
do, the gains are often too small to approach is opportunistic contrarianism.
survive transaction costs. “Useful,” he Here, downturns aren’t just tolerated—they’re
concedes, “but not reliable.” looked forward to. The investor builds a watchlist of

June 2025 Wealth Insight 21

Subscription copy of [[email protected]]. Redistribution prohibited.
 WORDS WORTH WISDOM

great companies they’d love to own but that are too

expensive in ordinary times. Market perception
When fear grips the market and prices fall across Abys- Very Very Awe-
the board, they revisit this list, revalue these mal Bad Bad Avg Good Good some

businesses under crisis assumptions and strike if the

Awesome
updated value exceeds the price.
This is how Damodaran himself invests. Very Good

Company quality
“You may be tempted to play with the numbers to Good
make these companies look undervalued,” he
Average
writes. “But a better path is to put them on your
list... and leave them there.” Bad
Recently, he placed limit buy orders on BYD, Very Bad
Mercado Libre and Palantir—companies he’s long
Abysmal
admired but waited to buy. “The crisis is young,” he
writes, “and the order is good until cancelled.” Green indicates most favourable for investor while red indicates least
Central to this approach is a crucial distinction favourable. Other shades fall in the middle.

Damodaran made years ago—great companies are not

always great investments. Why? Because markets often the market is selling takes a mindset, a time horizon
price them for perfection. and a stronger stomach that most of us do not have,”
The figure on the top right, simple yet profound, he writes. He breaks it down into three essentials:
shows that great businesses are often bad buys due Mindset: Resistance to peer pressure and
to high prices. The true opportunity comes when fear public opinion.
causes markets to irrationally mark them down, even Time horizon: Willingness to wait out volatility
below intrinsic value. without flinching.
Opportunistic contrarianism isn’t just about Stomach: Capacity to endure short-term losses with
bargains. It’s about preparation. It demands clarity on long-term conviction.
what you want to own before a downturn hits—and the Contrarian strategies, he puts it, may not work if
courage to act when it does. one is not psychologically attuned to their stresses
and demands. So before buying any dip, Damodaran
The final filter? You, the investor asks investors to reflect, not just on the company
In the end, Damodaran reminds us that no strategy, no or the chart, but on themselves. Because in the end,
matter how elegant, can succeed if it’s misaligned with being a contrarian is not just a financial choice.
the investor’s temperament. “Buying when the rest of It’s a personal one.

The key to riches

The Way to Save & Prosper is a compilation of the most
useful, timeless articles from Mutual Fund Insight. It can be
used both by beginners and experienced investors. Its three
sections — Insights, Concepts and How to Invest — describe
the precepts of investing and also help you start investing.

22 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 Get Ahead.
Stay Ahead.
Take action with expert advice that drives results

Helping You Win With Stocks

valueresearchstocks.com

Subscription copy of [[email protected]]. Redistribution prohibited.

19 ANNIVERSARY
ISSUE
July 2025
th

Subscription copy of [[email protected]]. Redistribution prohibited.

Subscription copy of [[email protected]]. Redistribution prohibited.
 MARKET COMPASS

Promoter stake shake-up

Companies where promoter stake changed substantially in Q4 FY25

H
igher promoter holding shows that the The tables below list the companies where the
promoters are bullish about a company. promoter stake has noticeably changed over the
In contrast, a fall in the promoter stake last quarter. We took companies whose
is usually seen as a negative development. promoter stake in the previous quarter was
However, corporate actions, such as at least 25 per cent. In the case of an
rights issues, mergers and promoter increase in promoter stake, we set a
reclassification, can also impact promoter threshold of 4 percentage points. In the
holdings. Hence, one needs to dig deeper case of a decrease in promoter stake, we set a
while tracking promoter stakes. threshold of 5 percentage points.

Increase in promoter stake

Companies where promoter stake rose by at least 4 percentage points
  Promoters’ stake (%)

Company Sector M-cap (` cr) Mar '25 Dec '24 Increase in promoter holdings (% pts) 3M return (%)

The India Cements Const. Materials 10,010 81.5 55.5 26.0 -26.6

Oswal Agro Mills Trading 1,095 46.9 41.9 5.0 2.6

SpiceJet Aviation 6,373 33.5 29.1 4.3 -20.0

Astec Lifesciences Chemicals 1,342 70.9 66.8 4.1 -32.4

Zaggle Prepaid IT 5,324 44.2 40.1 4.1 -30.7

Fall in promoter stake

Companies where promoter stake declined by at least 5 percentage points
 
Promoters’ stake (%)

Company Sector M-cap (` cr) Mar '25 Dec '24 Decrease in promoter holdings (% pts) 3M return (%)

BN Holdings Agri 1,519 5.9 55.2 -49.3 -29.4

Nitco Const. Materials 2,963 16.2 46.8 -30.6 -7.8

Rajesh Power Services Trading 2,350 73.4 100.0 -26.6 -15.9

Sundrop Brands FMCG 3,077 33.9 51.8 -17.9 -18.5

AWL Agri Business FMCG 34,656 74.4 87.9 -13.5 -16.2

Fischer Medical Chemicals 5,526 62.8 74.9 -12.1 27.5

Indo Thai Securities Finance 2,139 61.7 72.2 -10.5 47.0

Windsor Machines Capital Goods 2,996 44.5 53.9 -9.4 -9.8

Simplex Infrastructures Infrastructure 1,895 42.4 49.8 -7.5 7.9

Centum Electronics Electricals 2,901 51.5 58.8 -7.2 -23.4

JB Chemicals & Pharma Healthcare 25,082 47.8 53.7 -5.8 -12.1

Kothari Industrial Chemicals 3,156 47.8 53.4 -5.6 124.1

Azad Engineering Capital Goods 11,343 60.3 65.9 -5.6 -21.0

Prataap Snacks FMCG 2,801 54.9 59.5 -4.6 -5.3

Only those companies with an m-cap of min. `1,000 crore (as of May 14, 2025). Returns as of March 2025. Promoter stake in previous quarter at least 25 per cent.

26 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Pledging tracker
Companies where promoter pledging noticeably changed in Q4 FY25

P
romoter pledging is an important pledged shares. However, pledging takes an ugly turn
analytical parameter. When promoters when the pledged stake is high, and the promoter is
pledge shares, they keep shares as unable to pay back the dues. This may force the
collateral with a financial institution, such financing institution to sell the pledged stake,
as a bank, to raise money. It’s just like which can result in a sudden fall in the stock price
mortgaging something for money. and the dilution of promoter stake in the company.
Pledging is not always bad. Many times, Generally speaking, a high pledged stake also
promoters pledged their stake for sound indicates bad management. Thus, investors should
business reasons and later released their avoid companies that have high levels of pledging.

Increase in pledging
Companies where promoter pledging rose by at least 16 percentage points
Pledged stake (%)
M-cap Increase Promoter 3M stock Debt-to-
Company Sector (` cr) Mar '25 Dec '24 (% pt) stake (%) return (%) Z-Score F-Score equity

Marathon Nextgen Realty 2,696 91.5 0.0 91.5 73.6 -12.0 2.9 4 0.6

NRB Bearings Auto & Ancillaries 2,357 91.4 0.0 91.4 51.2 -28.0 4.4 6 0.2

Aadhar Housing Finance Finance 19,425 67.5 0.0 67.5 75.6 0.3 0.0 0 2.0

GMR Power Power 8,403 75.4 41.6 33.8 50.5 -5.5 0.1 5 12.7

Sigachi Industries Chemicals 1,689 44.0 23.4 20.7 44.1 -29.7 5.8 2 0.3

Prime Focus Media & Ent. 2,934 20.4 0.0 20.4 69.9 -34.1 1.1 1 9.5

SMS Pharmaceuticals Healthcare 2,281 37.6 19.4 18.2 66.3 -11.3 4.5 7 0.5

Raymond Lifestyle Textile 5,971 26.2 9.4 16.8 54.7 -50.4 31.8 5 0.1

Decrease in pledging
Companies where promoter pledging declined by at least 7 percentage points
Pledged stake (%)
M-cap Decrease Promoter 3M stock Debt-to-
Company Sector (` cr) Mar '25 Dec '24 (% pt) stake (%) return (%) Z-Score F-Score equity

Aster DM Healthcare Healthcare 29,717 40.7 98.9 -58.2 41.9 -5.6 2.0 8 0.2

Hubtown Realty 2,568 26.8 54.1 -27.2 32.1 -29.1 0.9 3 0.4

Ashapura Minechem Mining 3,548 0.0 14.8 -14.8 47.8 -7.9 2.4 7 1.1

Ceinsys Tech IT 2,797 0.0 14.7 -14.7 51.9 -28.0 37.8 8 0.1

GMR Airports Infrastructure 92,507 17.8 29.5 -11.7 66.2 -3.7 2.1 7 -20.8

Walchandnagar Inds. Capital Goods 1,434 49.2 60.3 -11.1 31.8 -46.5 2.6 5 0.8

Jain Irrigation Systems Plastic Products 3,782 48.8 58.9 -10.1 26.0 -15.5 1.9 8 0.7

Pitti Engineering Capital Goods 3,637 0.0 9.5 -9.5 54.2 -20.7 4.1 6 0.6

Vakrangee IT 1,086 0.0 7.8 -7.8 40.1 -72.4 5.8 9 0.0

Min. m-cap of `1,000 crore as on May 14, 2025. Returns as of March 2025. Z-Score: Predicts a company’s financial distress or the possibility of its going
bankrupt within two years. A Z-score of more than three is desirable. F-Score: Highlights financial performance as compared to that in the previous year.
An F-Score of seven or above is good. A negative value for debt-to-equity implies negative net worth.

June 2025 Wealth Insight 27

Subscription copy of [[email protected]]. Redistribution prohibited.
 MARKET COMPASS

Institutional
moves
Top five companies across
each market-cap category
where mutual funds
significantly changed their
holdings (per cent of equity)
between December 2024
and March 2025.

Increase in position Decrease in position

Large caps
Mar Dec Change Mar Dec Change
Company Sector 2025 2024 (% pt) Company Sector 2025 2024 (% pt)

Axis Bank Bank 32.0 29.0 3.0 Coromandel Chemicals 15.0 16.5 -1.5
Eternal Retailing 19.4 16.4 3.0 Muthoot Finance Finance 10.0 11.3 -1.3
Apollo Hospitals Healthcare 15.4 12.8 2.7 Bharat Electronics Capital Goods 15.0 16.2 -1.2
Dr. Reddy's Lab Healthcare 12.9 11.1 1.8 ICICI Prudential Life Insurance 6.5 7.5 -1.0
HPCL Crude Oil 18.7 17.0 1.7 Cholamandalam Invest Finance 12.5 13.4 -0.9

Mid caps
Mar Dec Change Mar Dec Change
Company Sector 2025 2024 (% pt) Company Sector 2025 2024 (% pt)

Hexaware Tech IT 8.7 0.0 8.7 Aavas Financiers Finance 7.9 22.3 -14.4
AWL Agri Business FMCG 8.5 0.0 8.4 CDSL Business Ser 7.2 11.2 -4.0
TBO Tek Hospitality 14.6 8.6 6.0 IndusInd Bank Bank 27.6 30.3 -2.8
Max Financial Finance 39.9 35.0 4.9 Whirlpool Of India Cons Durables 25.5 28.2 -2.7
Cyient IT 28.1 23.8 4.3 NALCO NFM 9.4 12.0 -2.6

Small caps
Mar Dec Change Mar Dec Change
Company Sector 2025 2024 (% pt) Company Sector 2025 2024 (% pt)

Ather Energy Auto & ANC 11.5 0.0 11.5 Can Fin Homes Finance 15.1 20.1 -5.0
TeamLease Services Biz Services 45.4 34.6 10.9 Samhi Hotels Hospitality 10.2 15.1 -4.9
Awfis Space Solutions Biz Services 24.3 19.2 5.1 Barbeque-Nation Hospitality 16.9 21.3 -4.5
Happiest Minds IT 8.4 3.7 4.7 Dreamfolks Services Infrastructure 3.1 7.1 -4.0
The South Indian Bank Bank 8.3 3.8 4.5 Avalon Technologies Electricals 16.9 20.7 -3.7

28 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Go gl bal
without
the hassle
In today’s world,
your opportunities shouldn’t
stop at India’s borders. While the Indian market offers immense potential, some of the world’s biggest
innovations and wealth-builders are abroad, and tapping into them doesn’t have to be complicated.

International passive funds offer With a single investment, you gain

a simple, cost-effective way to diversify exposure to developed and emerging
across global markets. By tracking markets alike, reducing your
international indices, these funds give dependence on local market
you access to giants like Apple, Microsoft, conditions. This global
Nestlè, or Toyota, all without the need to diversification helps balance your
open a foreign trading account or portfolio and positions you to capture
navigate complex overseas tax rules. growth from the world’s top companies.

And because passive funds come with Expanding your

lower fees than actively managed global portfolio across the
funds, you keep more of your returns over world has never been
time. That cost efficiency, combined with easy simpler. With passive
access, makes international passive funds a funds, unlock the global
smart addition to any investor’s toolkit. markets hassle-free.

Views expressed here cannot be construed to be a decision to invest. The statements contained herein are
based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment
Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or
any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its
Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this
Diversifying internationally is content. The recipient(s) before acting on any information herein should make his/her/their own investigation
as easy as… and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on
the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done
ONLY
AFTER
CONSULTATION
TO
THE
ÜNANCIAL
CONSULTANT
TO
UNDERSTAND
THE
SPECIÜC
LEGAL
TAX
OR
ÜNANCIAL
IMPLICATIONS

An investor education and awareness initiative by Mirae Asset Mutual Fund. All Mutual Fund investors
have to go through a one-time KYC (Know Your Customer) including the process for change in address, Phone
number, bank details, etc. Investors should deal only with registered Mutual Funds details of which can be
VERIÜED
ON
3%")
WEBSITE
HTTPSWWWSEBIGOVIN
UNDER
l)NTERMEDIARIES
-ARKET
)NFRASTRUCTURE
)NSTITUTIONSm

For further information on KYC, RMFs and procedure to lodge a complaint in case of any grievance, you
may refer the Knowledge Centre section available on the website of Mirae Asset Mutual Fund. Investors may
LODGE
COMPLAINTS
ON
HTTPSWWWSCORESGOVIN
AGAINST
REGISTERED
INTERMEDIARIES
IF
THEY
ARE
UNSATISÜED
WITH
THE

RESPONSES
3#/2%3
FACILITATE
YOU
TO
LODGE
YOUR
COMPLAINT
ONLINE
WITH
3%")
AND
SUBSEQUENTLY
VIEW
ITS
STATUS

Mutual fund investments are subject to market risks, read all scheme related documents carefully. You
may consult your Financial Advisor or Mutual Fund Distributor before taking investment decisions.

June 2025 Wealth Insight 29

Subscription copy of [[email protected]]. Redistribution prohibited.
 ANALYST’S DIARY

A boring investment with

big rewards
Why Coal India might
deserve a spot in
your portfolio, Mining coal like never before
especially now

E
quity markets might be 1,000 in million tonnes
dragging their feet right now
750
but you don’t have to. When
volatility is high, smart investors
500
don’t flee equities; they reposition.
They seek out companies that 250
preserve capital, generate steady
cash flows and quietly compound 0
wealth. That’s where dividend FY15 FY24
aristocrats pass muster. These
mature, well-established giants
ensure fewer wild swings and more
steady, reliable payouts that offer
downside protection. One such
name in the Indian market is Coal
India—a lumbering PSU for years,
long written off by growth-focused
investors that now stands out for an dividends rewarding are their near- yield. However, that won’t be the
entirely different reason: Certainty. certainty. Coal India’s massive cash case at Coal India’s current levels.
buffer means investors can The stock’s yield-to-cost (actual
The dividend case continue earning the current yield return on the original investment)
At current prices, Coal India in the medium-to-long term even if would still be the same 7 per cent,
offers a dividend yield of around the company’s growth or stock or can even improve in case the
7 per cent, equal to what a bank fixed price stagnates. In other words, company increases its payouts. The
deposit pays. Not just that, unlike a Coal India essentially pays you to question then is what can help it
fixed deposit, Coal India offers wait—through rough patches, increase payouts in the future?
liquidity and potential for sideways markets or broader
capital appreciation. Its corrections. What happens if the Growth tailwinds
dividends are running company sees additional growth It’s the convergence of many
on a solid cash pile, and share price increase? On tailwinds that could help it raise its
that has rocketed since paper, price increase reduces payouts. Coal India enjoys a near-
since FY22. The higher and
consistent free cash flow has enabled
it to fund both dividends and minor Stock Rating 10/10 5/10 8/10 2/10
expansions without relying on  Quality Score Growth Score Valuation Score Momentum Score
heavy debt. Data as of April 30, 2025
What further makes the

30 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
A cash generating machine
The company has generated `97,000 crore in free cash flow over the last decade
z Operating cash flow z Free cash flow In ` cr

94,944
87,433
56,676
53,931
50,730

50,987
49,373
43,996

42,448

31,925
30,278

28,239
27,738
24,633

21,881

9,036

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

On a three-year cumulative basis as of each financial year

monopoly status, supplying almost Also keep in mind that this is coal to renewable sources. The
70 to 80 per cent of India’s not the Coal India of the last chances are slim but not zero, given
domestic coal. And decade, which struggled with red India’s bold targets of 500 GW of
despite the country’s tape, poor execution and capped non-fossil capacity by 2030. Over
ambitious green prices. Post-2020 reforms have time, this will eat into coal’s
energy goals, coal shifted the narrative. Mining dominance, potentially impacting
still fuels over 70 per clearances have been fast-tracked. the company’s volumes in the long
cent of India’s electricity Pricing flexibility has improved, run. There’s also the question of
generation. That dependence won’t especially for e-auction coal. execution. As a government-owned
vanish overnight. In fact, as India’s Logistics costs are falling due to entity, Coal India still carries the
infrastructure and industrial base first mile connectivity projects and baggage of bureaucracy. Project
expand, the government projects most importantly, power demand is delays and operational inefficiencies
coal demand to rise 8 per cent continually surging. What was can’t be ruled out entirely.
annually (in terms of volume) from once a sluggish PSU is now a vital
around one billion tonnes in FY24 cog in India’s growth engine with A boring investment,
to 1.5 billion tonnes by FY30. the policy wind finally at its back. thankfully
Coal India is readying to meet Coal India won’t win any laurels in
this demand. It plans to cross What about risks? innovation. It’s not exciting. It’s
one billion tonnes of production by The growing cash flows are fueling not ‘new economy’. But in
FY26, with fresh capacity from the dividend engine. The biggest turbulent markets, boring can be
mechanised mines and new growth driver, therefore, also carries brilliant. As a near-monopoly in a
projects coming online. This the biggest risk. Anything happens critical sector, the company offers
volume growth could help it make to the cash stream and the payouts predictability. Whether or not its
its dividend payouts fatter. Not just could disappear. Stagnant cash share price takes off, the current
that, the company could see its generation will still allow dividend will keep coming as long
earnings increase by 5 to Coal India to maintain as the cash keeps flowing in,
8 per cent per annum over the next the current yield. But if giving investors consistent,
five years. Add that to the existing this were to decline, it inflation-beating income. And
7 per cent dividend yield and you will take the dividend if the coal demand story plays
are already looking at potential stream down with it, out, patient investors could even
annual returns of 12 to 15 per cent eroding our investment thesis. And be rewarded with additional
from a company trading at just what could diminish cash flows? A capital appreciation.
6.5 to 7 times trailing earnings! fast and sudden pivot away from By Satyajit Sen

June 2025 Wealth Insight 31

Subscription copy of [[email protected]]. Redistribution prohibited.
 ANALYST’S DIARY

Building moats that matter

How a unique chemistry, control over critical inputs and import
substitution are powering Vishnu Chemicals’ growth story

I
n the booming specialty long-term investors would do well
chemicals industry, Vishnu to consider.
Chemicals has carved out a rare
position: a niche dominator that A deep moat in chromium
isn’t trying to be everywhere but and barium
aims to be indispensable where it Vishnu Chemicals commands an
matters. From aerospace coatings to estimated 60 per cent market
ceramic glazes, its core chemistry— share in chromium chemicals
chromium and barium—forms the and 40 per cent in
backbone of some of the most barium chemicals in
demanding industries. And unlike India. Chromium
many mid-cap industrial stories, chemistry—valued
Vishnu has been betting not on for its corrosion
aggressive expansion but shrewd resistance and heat
vertical integration, strategic import stability—is deeply
substitution and capital discipline embedded in high-
for its growth. performance sectors
That strategy appears to be like pharma, aerospace, automotive through the acquisition and
working. Over the past five years, and luxury construction. In this subsequent turnaround of Belgium-
Vishnu Chemicals has compounded space, Vishnu faces little to no based Solvay’s Indian barium
its revenue and profit after tax at domestic competition. Globally too, business and the commissioning of
13 per cent and 37 per cent the competitive intensity has India’s only plant for precipitated
respectively. Margins have declined, with key European players barium sulphate (PBS).
expanded from 9 per cent in FY20 like Elementis and Lanxess exiting
to 14 per cent in FY24, thanks the segment due to regulatory and Backward integration as a
largely to backward integration cost pressures. Even China, strategic lever
moves that reduced input typically the elephant in every What truly differentiates Vishnu
dependence and improved cost industrial room, remains a net Chemicals is not just what it makes
control. Today, with the core importer in chromium chemicals. but how it sources and scales. The
chromium business operating at Vishnu’s barium portfolio, while company has methodically pursued
around 80 per cent capacity smaller in revenue share (about backward integration to de-risk
utilisation and global supply chains 16 per cent), is strategically input dependencies. In 2022, it
shifting away from China, the important. It feeds into sectors such commissioned a soda ash plant, a
company appears poised for its as batteries, ceramics and key raw material for chromium
next leg of growth. We assess its construction materials. Here too, manufacturing. In 2023, it acquired
growth levers along with risks that Vishnu has established a foothold Ramadas Minerals for captive barite
sourcing, used in its barium
portfolio. These moves helped it
withstand commodity price volatility
Stock Rating 7/10 5/10 6/10 8/10 and maintain stable margins.
 Quality Score Growth Score Valuation Score Momentum Score The latest in this integration
Data as of April 29, 2025
playbook is a `84 crore-chrome
ore mine and beneficiation plant

32 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
acquisition in South Africa. The specialty material used in revenue. This reduces
mine holds reserves of around aerospace, oil and gas and nuclear concentration risk and adds to
10 million tonnes—enough to sectors. India currently imports business resilience.
meet Vishnu’s raw material 2,000 million tonnes of chrome
sourcing (for chromium products) metal annually. Vishnu aims to Valuation and investor lens
for the next three decades. If commission its chrome metal At around 25 times trailing
finalised without delays, this capacity of 10,000 million tonnes earnings, Vishnu Chemicals may
acquisition could significantly by the second half of FY26, which appear inexpensive. But not
insulate the company from global is expected to contribute another necessarily when considering
ore price fluctuations, cushion 10 per cent volume growth to its whether execution can match the
margins and enhance profitability. chromium division. narrative. Can it scale chrome
metal production profitably? Will
Betting on import Export opportunities and the South African ore mine deliver
substitution accompanying risk as promised? Will strontium
A clear strategic theme running Nearly half of Vishnu’s revenue carbonate add meaningful volume
through Vishnu’s plans is import comes from exports. With global and margins?
substitution—targeting specialty customers looking for alternatives These are not trivial unknowns.
chemicals with consistent demand to Chinese suppliers, Vishnu is While these initiatives open new
and no domestic producers. Having positioned well to gain share. But revenue streams and deepen
already executed this with PBS, the this also makes the business Vishnu’s specialty credentials,
company now plans to enter vulnerable to trade frictions, they also come with gestation
strontium carbonate (used in tariff changes and currency risks. New capacities, especially
electric motors and ceramics) to volatility—factors outside the in unfamiliar segments, take time
meet its entire annual domestic company’s control. to scale and stabilise. Execution
demand of 5,000 tonnes with On the positive side, the missteps or market delays could
similar capacity expected by customer base is well-diversified, impact returns and derail the
Q1 FY26. It also plans to foray into with no single buyer contributing company’s raw material security
chrome metal production, a more than 5 per cent of total plans. Moreover, a slowdown in
end-user sectors like
construction, automotive etc., will
The power of niche operations certainly have a ripple effect on
FY20 FY21 FY22 FY23 FY24 Vishnu Chemicals’ volumes.

Revenue (` cr) 674 679 1,069 1,391 1,213

Bottom line
Vishnu Chemicals’ strategy of
Operating owning the value chain, finding
profit (` cr) 62 59 205 unsolved domestic demand and
135 169
positioning for global supply shifts
makes it a compelling business to
Op. margin (%) 9.2 8.6 12.6 14.7 13.9
track. But the next leg of returns
will depend less on story and more
Cash flow from on execution. For long-term
49 investors willing to stay patient,
operations (` cr) 94 134 68
67
Vishnu offers a differentiated play
in India’s specialty chemicals
PAT (` cr) 22 34 81 137 101
universe. But this chemistry
needs to pass the test of execution
ROCE (%) 14.2 12.1 23.9 30.7 20.0
and time before it can create
PAT stands for profit afer tax. ROCE stands for return on capital employed. lasting value.
By Abhinav Goel

June 2025 Wealth Insight 33

Subscription copy of [[email protected]]. Redistribution prohibited.
 ANALYST’S DIARY

Is Ather the better EV

poster child?
Ather is built better than Ola but that may not be enough

I
ndia’s two-wheeker electric
revolution has two poster Ather pips pure-play EV players on quality
children: Ola Electric and Ather
Energy. Both burst onto the scene z PP100 z Warranty cost as a % of revenue

with the same promise—to reinvent

urban mobility. However, Ola
Electric’s spectacular post listing
losses on D-Street might be working
in favour of Ather. It’s certainly 98
helping with the latter’s image, one 98 0.7
which is increasingly being 80 5.9
perceived for being engineering-led, 2.5
capital-aware and quality-focused.
After Ola’s post-IPO debacle, can
Ather deliver where its flashier rival
faltered? Let’s find out.
PP100: Problems per 100 vehicles

What Ather gets right

On quality, Ather comfortably
outpaces Ola. Its JD Power ratings, decisions. Scratch the surface and by total revenue since commercial
which track customer-reported you’ll realise that the picture isn’t operations began, should reflect
issues with a lower rating so glossy. Here’s why. the full financial journey. Ather,
signalling better quality, show 80 however, calculates its burn rate
problems per 100 vehicles. While Weak fundamentals only from 2019, when revenues
not great, it is better than Ola’s 90. Since FY19, Ather has burnt started coming in— leaving out the
Its warranty costs, 2.5 per cent of `3,400 crore and significant R&D spend in the
revenue, are materially lower than remains loss-making, earlier years post-incorporation.
Ola’s 5.9 per cent. with an operating loss That omission paints a rosier
Operationally, Ather runs a of `811 crore and a net picture than reality.
leaner ship. It outsources most loss of `861 crore for 12 The bigger problem is capacity
components, has stayed out of the months ending December 2024. utilisation, which is stuck at
capital-heavy battery cell game Ather also claims it is more 39 per cent. Yet, the company
and avoids owning showrooms. capital-efficient than Ola, citing a plans to double its production
What’s more, its EV tech is home- lower cash burn rate—0.6 capability—a brave move when
grown and not bought off the shelf. compared to Ola’s 0.7. But that’s utilisation is this poor. Gross
So far, so impressive. But not the case. The cash burn rate, margins (ex-subsidies) have just
investing goes beyond design calculated as total losses divided turned positive at 12 per cent,

34 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Rizta drags down unit revenue
Despite premium branding, Ather’s revenue per unit has slipped, reflecting its push into mass-market segments
Revenue per Cost of good Gross margin excl.
Volumes unit (`) sold per unit (`) subsidies (%)

FY22 23,402 1,58,192 1,64,003 -17

FY23 92,093 1,55,571 1,73,238 NA

FY24 1,09,577 1,43,333 1,48,918 -6

9M FY25 1,07,983 1,29,001 1,21,584 12

helped by a cheaper model mix `927 crore on capex, `750 crore on at nearly `12,000 crore, despite
(Rizta). But without scale, that R&D and `300 crore on marketing no profits and a steep P/B of
edge may not last. over the next three years. However, 4.4 times. With no
this may not be sufficient. The earnings, there’s no
The break-even mirage company’s `150 crore annual P/E to speak of. To
Can Ather break even? On paper, marketing budget looks modest in a justify this valuation,
yes, but it’s a stretch. market where incumbents spend Ather would need
To do so at a 20 per cent gross over `1,000 crore yearly. Similarly, `400 crore in annual
margin, it must sell 6.5 lakh units its annual R&D run rate has been operating profit at a lofty 30 times
annually— five times its current run inching above `300 crore and will multiple—an ambitious ask given
rate. That means growing 37 per cent likely increase in a segment where its current losses and unproven
a year for five years, differentiation will come from margins. Investors are essentially
double its current pace design, battery chemistry and betting on potential, with no
in a subsidy-rich software smarts. Thus, the certainty that it will translate into
environment. Not `750 crore marked for this may not performance.
impossible, but far from be enough. Ather will likely need
easy in an increasingly another funding round. And Smarter than Ola, but not
crowding market. when it comes, expect investment-ready
shareholder dilution. To its credit, Ather looks more
The brand goes mass- mature than Ola Electric. It’s
market, but can it stick? The missing moat measured in its growth, better at
Rizta, Ather’s budget EV, now Besides unsteady financials, quality control and more
drives 50 per cent of its sales. But Ather’s biggest weakness is the thoughtful in capital
scaling it raises questions. Ather’s lack of a strong moat. Its tech is allocation. However,
urban-premium image may not solid but replicable, the brand may margins remain thin.
click with mass-market buyers who dilute as it taps into the mass Losses are persistent.
prioritise price and trust. Plus, market and its reach remains Breakeven is distant.
with sales largely concentrated in regional. In a crowded, fast-moving And the road to scale is paved with
South India, national expansion sector, where competition from uncertainty. Until Ather proves it
demands heavy spending on infra, domestic and foreign rivals looms can scale profitably without repeat
marketing and support. large, that’s a strategic gap. equity dilutions, it is best seen
as Ola’s near cousin that
What’s in the IPO war chest? Valuation: An expensive warrants a similarly cautious,
From its recent `2,626 crore IPO leap of faith wait-and-watch approach.
proceeds, Ather plans to spend At current levels, Ather is valued By Kunal Bansal

June 2025 Wealth Insight 35

Subscription copy of [[email protected]]. Redistribution prohibited.
 CHIRAG DAGLI
INTERVIEW Fund Manager at DSP Mutual Fund

Why CDMOs, hospitals

excite this
fund manager
Dagli also explains why Indian
pharma companies can easily
absorb the US tariff blow

W
ith nearly two decades of
equity investing
experience and a deep
expertise in the pharmaceutical
sector, Chirag Dagli, Fund Manager
at DSP Mutual Fund, brings a clear-
eyed view of the Indian healthcare
space. At a time when most investors
are on the edge regarding the impact
of US President Trump’s tariffs on
Indian pharmaceutical companies,
Dagli remains unfazed, calling them
“straightforward problems to solve.”
Currently, Dagli manages two
schemes at the fund house – DSP
Healthcare Fund and the DSP
Multicap Fund. Of these, the former
is rated four stars by Value Research.
In this interview, Dagli lays out
which pharma segments he finds
ripe for growth and those that are
overpriced, explains why the CDMO
space offers big opportunities for
Indian companies and highlights
the key factors poised to shape the
future of Indian healthcare over the
coming decade.

The hot topic right now is US

tariffs. To what extent can it have
an impact on Indian healthcare
companies? Do you think that
if continued, these can have

36 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 DSP Healthcare Fund | AUM: `2,912 crore

long-term growth effects the impact may not be very high and The other piece that we like is the
on the industry? they are straightforward problems to challengers in the US, which are
First, let’s look at the numbers. The solve. For example, India can say companies that are small in the US
US is a large $900 billion medicines that it will import drugs from the US generic market today and are trying
market at patient or consumer at zero tax. Because we are earning to build up a presence there. In the
prices. Of that, $100 billion is only $40 million on a $400 million US, if you look at the market, there
essentially generics. So, we are medicine import, today we export are these large companies, all the
10 per cent of the overall medicine $9 billion worth of medicines to the big names, that have large
bill in terms of value. In terms of US. So, it’s a very easy problem to fix businesses in India and the US.
volume, it’s precisely the reverse. Of as far as pharma tariffs are However, there are also smaller
the 10 pills consumers consume, concerned. Of course, what companies that are now trying to
nine are generic medicines and one eventually happens is also build a presence. There, we see an
is the innovator’s medicine. So, we something we don’t know. Because opportunity because the US market is
are small in the context of medicine there may be some announcement becoming increasingly unattractive
prices. That’s the point I want to today, then a retracing back, and so for newer players, and pricing for
make: Large in the context of on. But how I’m thinking about this many commodity generic products
volume, but substantially small in the structurally is exactly the numbers I has now flatlined and stabilised. So,
context of value. When Trump wants just told you. the environment in the US will allow
to cut prices on medicines, do the margin to keep improving. The
you think he wants to attack the only caveat is that the US is a market
10 per cent pool in terms of value, or where a few companies make a lot of
the 90 per cent pool in terms of The US is a market where money in a couple of products.
value? That’s the first point. a few companies make a Hence, product concentration and
The second point is that when you lot of money in a couple very high valuation multiples are a
look at the $100 billion, give or take, of products no-no for us, and we are avoiding
worth of price at which the consumer some of those names. However, from
is paying for generic medicines, the a structural two to three-year-year
manufacturer makes only $40 billion point of view, small companies that
or 40 per cent. A large part of the In the current de-rating phase, are trying to build a presence in the
value for generic drugs is sitting in which pharma sub-segments US are something we are excited
the US. These are pharmacy benefit offer a margin of safety, about. The third space where we
managers, wholesalers and retailers and where do you still see think business is good but
who make that part of the profits. frothy multiples? valuations are a little punchy is
Having discussed these basics, From a segment standpoint, CDMO the hospital space, where, say,
when you think about tariffs, say a (Contract Development and post-Covid, much valuation rerating
10 per cent tariff, just give or take. Manufacturing Organisation) is a has happened because the capital
Today, India does charge, and space that we are excited about. efficiency has improved.
we import from the US about China+1 is a very important trend We’ve seen a big trend of smaller
$400 million worth of medicines at a that we are seeing. It all started hospitals trying to corporatise and
10 per cent import duty. So, if there post-Covid and has picked up steam sell themselves to these corporate
is a 10 per cent tariff, it will be at recently. That’s a segment where I chains. Hospitals are a very stable,
manufacturer prices or on the think there’s a lot of visibility. China nice business. Regulatory action is
$40 billion. That’s $4 billion at makes up more than 80 per cent of the only thing we worry about in this
consumer prices, which is the CDMO industry globally, and we one. But that said, the sector is doing
substantially lower than the entire want to take market share there and fine. The last bit is on the
medical bill for the consumer. So, it’s have the capability to do so. So, that diagnostics, where I think there was
10 per cent on $40 billion in a trend is very important. Valuations double-digit growth post-pre-Covid.
market worth $900 billion. With are a little high in the entire space, These companies were growing in
these two things in mind, we are very but I think growth is also there and the 15-16 per cent zone. Then Covid
clear that tariffs will be passed on, the momentum is very strong. came, normalised and growth fell

June 2025 Wealth Insight 37

Subscription copy of [[email protected]]. Redistribution prohibited.
 INTERVIEW

post that. We are now seeing growth opportunity. It comes gradually. The clear, retail investors have to avoid
come back, nowhere near the market remains competitive, but the direct investing, especially in
15 per cent they used to earlier, but China+1 element of customers trying pharma. In other sectors, such as
broadly in the 10-11 per cent zone. to shift away from China is equally hospitals, the process is a little more
Valuation multiples have also prevalent in generic API as well, linear. There, too, you can go wrong
corrected from the good old Covid albeit in a very cost-sensitive with valuation, fraud, etc. That’s a
days. So, today, valuations are much environment versus innovator, which different point. However, this is
better than we’ve seen in the past. is not as cost-sensitive. highly prevalent in pharma because
FDA inspection is a considerable risk.
With the China+1 trend gaining What is an emerging segment in We’ve seen companies go through
significant traction in recent the pharma industry that those cycles and come out as winners.
years, the API segment has investors should pay attention Some companies never come out as
become a crowded space given to? Also, are there any areas that winners, and so on. So it’s easier for a
the opportunity size. Could this one should stay away from? retail investor to buy or participate in
result in intense competition and For retail investors, I strongly the healthcare sector through a
thus, a contraction in returns, or recommend that they not directly mutual fund or an index fund.
is there enough room for growth invest in healthcare, specifically in
for all players? pharma, because when you buy a Intense competition and
When we talk about CDMOs, we talk aggressive consolidation are the
about CDMOs for innovators. Our new trends in the Indian
largest company will probably have a diagnostics space. How has it
2 per cent market share, maybe even changed the dynamics of the
less than that, a 1 per cent market industry? What do you think is
share. We are not competing with the endgame for this trend?
each other. We are competing with At the margin, competition is
the Chinese because they are huge. coming off a little bit. The diagnostic
So yes, it is becoming, at the margin, business has no entry barriers. The
a little more competitive. But am I only barrier is scale. Building a
worried that it hurts pricing? That `50-100 crore business in
isn’t a concern, at least today. Today, diagnostics is easy. It doesn’t take
it is more relevant for Indian much, as the equipment comes with
companies to actually up their game, financing. The big equipment
improve their chemistry healthcare fund, it can be an index suppliers give that equipment to you,
capabilities and deliver products to or an active fund. But if you think and you can just consolidate volumes
complex chemistries rather than about wanting to have exposure to and start doing business. The
worry about pricing. This is on the healthcare, having that through a question is to make money and scale
innovator side. On the generic API direct stock is far more risky. All the the business. If you look at the listed
side, the market has always been big, great companies in India have space, the five or six names are
very competitive, and it continues undergone a bad FDA inspection companies that have actually scaled
to remain so. That shouldn’t cycle. The question to ask yourself is, up. Hence, they are successful and
change anytime soon. if I buy a stock that goes up and is are making the kind of margins they
Remember, Indians are 2 per cent of my portfolio and are making. At a lower scale, that
competitive with the Chinese at a assuming it does well, it will increase margin is not available. One thing
fraction of their scale. That is the to 4 per cent of my portfolio. What that is very evident now, after five or
most important piece I want to happens when it goes through a bad six years of history, is that just by
highlight. The Chinese may be FDA inspection, and the stock goes discounting, you can’t scale this
multiple times India’s scale for a down 10-20 per cent on that day? business beyond a point. You will get
specific product, yet Indians are How will you react? That’s the initial success because you’re
competitive. That, I think, is the real question. So in my mind, I’m very cutting prices, some B2B businesses

38 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
will move to you, and so on. 4,000 operating beds, along with and so forth. Even increasing
However, sustaining that business another 4,000, it hurts your P&L medical insurance is a structural
level and growing thereafter is very (profit and loss) for a while to come. driver for the Indian healthcare
difficult. So that is very clear. This is what these companies went market. It layers around multiple of
On the M&A side, what has through. Fast forward to today, what these sub-segments. It helps with
happened is that initially, there were is happening is that companies of a higher diagnostics, more hospital
a lot of deals, and now you see deals certain size are now adding revenue and medicines. So, that is a
are not as easy to come by, simply 10-20 per cent capacity to their younger India, ageing over time and
because we now have six listed existing beds. So, the burn of new increasing medical insurance,
companies in the diagnostic space. beds on the older ones is much helping seek better, higher-quality
So, why would any seller want to sell? lower; hence, you see improved services. This is a major driver which
This is because they can see the capital efficiency. Inherently, the layers across most of these sub-
multiple listed companies very easily. business was always capital efficient. segments. On the export side, the
Earlier, deals happened at six, seven But this cost of growth was actually drivers we’ve seen in the last decade
or even 10 times EBITDA. Today, hurting overall capital intensity. So, are equally crucial for the next
those deals are not available because the company remains capital- decade. India is the pharmacy bowl
these companies are trading at much efficient and attractive, and I think for the world and will remain, much
larger valuations on the public side, that view is changing. However, what more so because, for the most part,
and those valuations are evident. So, is changing is the trend of more the developed world has moved away
I think the M&A opportunity is to biologics, complex medicines,
certainly overstated, and that trend autoimmune diseases, oncology and
will actually slow down a bit, but so forth. So, they are not focused on
organic competition will also come While developed world these large, mass-market medicines
off slightly. It’s a little bit mixed, I moves to biologics, India or cheaper drugs. That is the sweet
would say. It’s not easy to say whether can focus on mass-market spot where India comes in. We can
these are positive or negative trends. medicines export to the whole world, including
the US. Non-US is also an equally
Hospitals are typically capital- significant opportunity. It’s a
intensive. How do you evaluate fragmented, diverse opportunity,
whether a company is deploying standalone hospitals trying to like Russia, multiple markets.
capital prudently, especially corporatise or attach themselves to Again, these countries have few
when expanding bed capacity or larger corporate hospitals, which is options outside India for procuring
entering new geographies? helping the overall growth potential medicines. So that’s another
I think business has always remained for some unlisted hospitals. significant driver for the
very good for hospitals. When you export business.
look at reported capital efficiency What do you think will be the Finally, I think of some of these
and return on capital pre-Covid, three key growth factors for new frontiers of innovation in
these companies had very low capital Indian healthcare companies in medicine. For example, if you look at
efficiency. Now, that does not mean the next decade? the next 12 months, weight-loss
that the business inherently was I think healthcare is one space that is drugs will be generic next year and
capital inefficient. So, if I add 4,000 not a singular segment. There are six widely available in India from then
beds to a base of 4,000 beds, I will or seven sub-segments we talked on. We’ll see how that evolves, but it
suffer a lot because it typically takes about, each with very different will undoubtedly change the
two to three years for a hospital to drivers. The Indian formulation healthcare dynamics and challenge
come up. It takes me another two to market continues to grow, in line our current status quo. We’ll see
three years to start running the with GDP, maybe slightly lower. The how some of these new medicine
hospital and making money on that. drivers are straightforward: India has innovations are changing. However,
So there’s a five- to six-year period. a median age of 29 today. As we age, a lot of innovation is happening,
It’s a long gestation and capital- we consume more medicines, better which is a significant driver for
intensive service. When you add medicines, higher-quality medicines healthcare as a sector.

June 2025 Wealth Insight 39

Subscription copy of [[email protected]]. Redistribution prohibited.
 COVER STORY

By Udhayaprakash, Kunal Bansal and Harshita Singh

40 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
I
n Formula 1, it’s not the sleek design or the paint is the driver. Even the fastest car can lose with the
job that wins races. It’s the precision engineering wrong person at the wheel. And in investing, that
of the engine and the aerodynamic brilliance of the driver is ‘valuation’. A great business bought at a
chassis that does. The two work together to propel the foolish price can disappoint. But when you pair a
car to the finish line. powerful engine with a skilled driver, magic happens.
Stocks aren’t any different. Think of each stock as a This month’s cover story dives into these three levers
high-performance vehicle. Its engine is capital of long-term wealth creation. We tell you how the twin
efficiency and the chassis is the capital that’s put back engines drive stock returns and how valuation, often
into the business to sustain growth. This duo together overlooked, makes the difference between a winner and
pushes earnings forward and essentially compounds a wreck. We have also unearthed nine stocks that offer
your wealth. excellence on all three and can keep lapping the field.
But an equally important third factor to win the race Strap in! We’re heading to the track.

The engines that make your stock a Ferrari

T
he traditional method of looking at historical GMR Airports reinvests heavily, but has a five-year
growth to spot fast growers might be reliable but it median ROCE of just 4 per cent, yielding a low expected
lacks a forward-looking lens. That’s where this growth. While Abbott India boasts an impressive
elegant formula fills the gaps: 41 per cent ROCE, it reinvests just 27 per cent, limiting
expected earnings growth to 11 per cent.
Operating earnings growth = Long-term wealth creation requires both levers
Return on capital employed (ROCE) working in tandem at the highest rate possible. Most
× importantly, this exercise crucially depends on your
Reinvestment rate judgement. Can the business sustain its ROCE and will it
have the opportunity (and discipline) to reinvest?
These two variables, ROCE and reinvestment, tell you Answering this will require assessing its industry and
how companies compound earnings by generating business model.
higher returns over their cost of capital (investments) This brings us to a deeper layer of analysis, where this
and putting a part of the profits back into the business to framework meets the one variable that can amplify or
keep growing.
Here’s how this works: a 20 per cent ROCE on Figure 1
`100 crore of capital means `20 crore in operating Where high ROCE and
profit. If the company reinvests half of this profit, its reinvestment meet, find me there
capital base expands to `110 crore. Maintain the same
The combination that leads to the highest
ROCE and next year’s profits rise to `22 crore, pushing
earnings growth
earnings forward by 10 per cent.
However, as it is with an F1 car, both of these engines Expected growth ROCE Reinvestment rate In %
must fire together. A high ROCE without reinvestment
goes nowhere. A high reinvestment rate with poor ROCE
is like burning fuel but gaining no speed. True 27 27
acceleration comes from balance.
As figure 1 shows, a combination of high ROCE with 23 23
high reinvestment delivers the highest growth. An 60 x 45 45 x 60

80 per cent ROCE but only 10 per cent reinvestment

75 x 30 30 x 75
grows no faster than one with the reverse setup. Both 14 14
land at 8 per cent growth, crucial to remember for those
that might get enamoured by exceptional numbers on
just one side of the equation. 90 x 15 15 x 90
The capital markets are littered with such mismatches.

June 2025 Wealth Insight 41

Subscription copy of [[email protected]]. Redistribution prohibited.
 COVER STORY

The star driver

V
aluation to investing is what a star driver is to with no moat sees sharp compression. A strong one, with
racing. Had Lewis Hamilton not joined Mercedes durable competitive advantages like brand power or
in 2013, the team would not have surged to the scale, may see a more graceful decline. Assessing
dominance it did in the following years. Similarly, a business quality thus, can help you predict the possible
company may have excellent fundamentals—high ROCE extent of valuation compression in the long term.
and robust reinvestment—but unless it’s paired with the Once you have reasonably estimated a business’
right valuation, it may not deliver great returns or may earnings growth and exit P/E, you can reverse engineer
even erode them. the maximum multiple at which you should pay today for
So, how does one find the right price to pay? This is a a desired investment return. Our guide (see figure 2)
two-pronged approach. You have to estimate the shows how to conservatively project the three variables.
expected earnings growth of a business, using the The QR code below will further take you to a customisable
earlier formula by estimating the ROCE and tool where you can input your own data, including your
reinvestment it can sustain in the long run, and its likely desired return, to get the right entry multiple.
exit P/E—the multiple the market might assign to the To illustrate better, we backtested this exercise on
company, let’s say, a decade from now. Astral. In FY15, the company had a five-year median
Predicting an exit P/E requires understanding mean ROCE of 31 per cent and reinvestment rate of
reversion. It simply means that a company’s valuation 94 per cent at a P/E of 69 times. To stay conservative, we
tends to drift back toward its industry average over time. estimated it would maintain its ROCE at 25 per cent and
So, if a stock trades at a lofty P/E of 50 today, it’s possible reinvestment at around
it can compress to the broader market average of 20 to 90 per cent based on its capex plans
25 times in the next decade. Why? High P/Es reflect high at the time. We assumed its multiple
growth expectations. But as companies mature, growth would contract 40 per cent over
naturally tapers off and so do valuations. For most 10 years, arriving at an exit P/E of
businesses, some degree of valuation reset is inevitable. 40 times. By calculating the expected
However, the magnitude is not uniform. A weak business earnings growth and using the exit

Figure 2
Aiming for conservatism, not prescience
How to estimate P/E contraction
z 10-year horizon: Discount z 20-year horizon: Halve current z Strong businesses may see less
current P/E by 30-40 per cent P/E (e.g., from 40x to 20x) contraction, weak businesses will
deserve steeper cuts

How to estimate
reinvestment rate
z High planned capex/
How to expansion: Assume
estimate ROCE existing rate
z Use the company’s z High dividends/less
five-year median ROCE expansion: Assume
z Apply a 10-20 per cent lower reinvestment;
discount to account for apply 20 per cent
future risk discount
These estimates can vary based on the company’s business model, industry dynamics and expansion strategies.

42 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 Figure 3 would have been justified in 2015. The stock in fact
The right price tag for 15% returns clocked 21 per cent annual returns in the last decade.
Higher the ROCE and reinvestment, higher the
justified valuation Why not just look at P/E?
The point of this exercise was to figure out the right
Sustainable
RoCE (%) Starting P/E
price to pay today for returns you hope to get in the
future. Simply looking at the P/E alone or comparing it
with the long-term average will not tell you if today’s
15 9 12 14 18 22 26 price is fair—something that this framework does. As
shown in figure 3, combinations of high ROCE and
reinvestment justifiably command higher entry P/Es.
30 12 18 26 39 56 81
This is to say that a high P/E may not be necessarily bad
and a low P/E may not always be good. In cases where
you reasonably expect the business to grow handsomely,
45 14 26 47 81 136 222
a high multiple may be justified. This method thus, shifts
the valuation question from “Is this P/E low?” to a more
60 18 39 81 161 305 556 concrete “Is this P/E fair for the return I expect?”

The framework isn’t without limitations

75 22 56 136 305 643 1,289 z The method requires homework. You can’t rely on
screeners or historical averages alone. Reading annual
reports, studying reinvestment plans and assessing
90 26 81 222 556 1,289 2,799 whether the business has pricing power or competitive
insulation or not are key prerequisites.
15 30 45 60 75 90 z It requires judgement under uncertainty. The forecasts
will not always be precise but they don’t need to be.
Reinvestment rate (%)
Remaining conservative in your estimates is key.
Assuming an exit P/E of 25 times and a desired return of 15 per cent after z It’s less useful for cyclical businesses where ROCE
10 years. This combination was considered only for demonstration.
sharply fluctuates with the economic cycles. For steady
compounders, however, it is invaluable.
P/E, we worked backward and arrived at an entry P/E of z It’s often too strict for momentum-driven markets. But
78 times for a 15 per cent annual return over 10 years. that’s not a flaw. It’s a filter. This prevents you from
This means even 78 times, seemingly high at first blush, chasing hype and focuses attention on quality.

How we zeroed in on the top contenders

N
ext up, we have discussed potential to 24 per cent and a reinvestment rate of 90 per cent to
compounders handpicked using our framework. 72 per cent.
But first, here’s how we spotted them using the z A five-year cumulative CFO to EBITDA ratio above
below filters: 70 per cent to ensure effective cash conversion.
z Non-BFSI companies with a market capitalisation of z For exit P/E, we applied a 30 per cent haircut,
over `600 crore while excluding micro caps. expecting a company with a current P/E of 50, for
z A five-year annualised revenue and profit after growth instance, to trade at 35 in 10 years.
of over 10 per cent adjusted for exceptional items and 27 companies made the cut with estimated entry P/Es
discontinued operations. closer to their current levels. We further narrowed the
z A five-year median ROCE above 15 per cent and a list to nine stocks based on qualitative factors. However,
reinvestment rate of over 70 per cent. To remain given the conservative approach of this exercise, we
conservative, we then applied a 20 per cent haircut to suggest readers conduct their own due diligence and do
both. For instance, an ROCE of 30 per cent was adjusted not take this list for our recommendation.

June 2025 Wealth Insight 43

Subscription copy of [[email protected]]. Redistribution prohibited.
 COVER STORY

DEEPAK NITRITE

Capacity as competitive moat

Deepak Nitrite is a powerhouse in India’s chemical sector, momentum will persist. The company’s next move is a
operating through two major divisions: Advanced bold `14,000 crore investment in polycarbonates and
intermediates, primarily basic chemicals (30 per cent of phenolic derivatives, slated to be completed by FY28.
revenue in 9M FY25) and phenolics (70 per cent of While the new capacity will temporarily weigh on ROCE,
revenue). The company’s greatest asset is its scale. While due to the mismatch between increased assets and
the chemistries it operates in don’t have significant entry delayed revenue, the long-term potential is significant.
barriers, Deepak Nitrite’s capacity is so vast that India remains entirely import-dependent for
replicating it is a daunting task for new entrants. these chemicals, giving Deepak Nitrite a
The key driver behind its impressive ROCE is
 significant edge if it successfully ramps up.
Stock Rating
its well-curated product portfolio. What was once However, the flip side of this bet is the
a slightly above-average ROCE story began to financing. With `900 crore in operating cash,
soar when phenolics—a chemical India had long 36.8 the company faces the necessity of taking on
Current P/E
relied on for imports—became the company’s substantial debt to fund the expansion. The
core focus in 2018. This shift caused a surge in wager is clear: It’s a high-risk, high-reward
revenue, reducing reliance on low-margin 45.0 proposition. If the company pulls this off, growth
advanced intermediaries, which include basic Justified P/E
could be extraordinary and its reliance on basic
commodity chemicals, specialty chemicals and chemicals—subject to global price swings—
performance chemicals. This pivot also marked 37.6 would become increasingly irrelevant. The
the beginning of its high-ROCE era. 5Y median question remains: Will this gamble pay off or will
ROCE (%)
But the big question now is whether this it backfire? Only time will tell.

TANLA PLATFORMS

The messaging muscle

Tanla is riding the digital customer engagement competition within its SMS protection and Digital
tailwinds, providing businesses with tools to reach out platform segments. With most large companies
to their users. It operates in two main segments: already onboarded, growth in this area is stagnating.
Enterprise division, contributing a hefty 91 per cent of To combat this, Tanla is rolling out its Wisely platform,
revenue and the Digital platform business expanding from SMS to WhatsApp API services. Wisely
contributing a smaller 9 per cent. not only ensures secure communication but also
Tanla, as part of the Enterprise segment, introduces interactive messaging, adding
enables companies to communicate with  more value and offering a stronger product.
customers via SMS. A select few customers, Stock Rating The company is also eyeing expansion into
however, tap into the Digital segment, where international markets, hoping to capitalise on
the focus shifts to delivering secure, fast global demand for secure communication.
messages that are protected from phishing
13.2 Despite its solid fundamentals, Tanla is still
Current P/E
attempts. While the Enterprise segment is trading at a relatively low P/E ratio of about
low-margin, the Digital platform, though 13 times. This suggests the stock doesn’t
small in revenue share, delivers a stunning 19.1 require explosive growth to deliver solid
Justified P/E
33 per cent of operating profit. It’s a returns. With moderate growth in its Digital
low-capital business with high margins, a or Wisely business, Tanla could significantly
sweet spot for Tanla. 40.0 improve its ROCE, potentially delivering
5Y median
But Tanla’s path isn’t without obstacles. ROCE (%)
much stronger gains than the market
The first challenge lies in the intense currently expects.

44 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
SUPRIYA LIFESCIENCES

The API ace

Supriya Lifesciences is a key player in the API (active require overcoming intense competition—especially in
pharmaceutical ingredients) market for therapeutic areas regulated markets where price wars are relentless.
like anaesthetics, antihistamines and anti-asthma. As one On the back of these plans, Supriya has set ambitious
of India’s largest API exporters, it has carved a niche in a revenue targets: `1,000 crore by FY27, rising to
crowded market. `1,600 crore by FY30. With the pharmaceutical sector
The company’s key strength lies in its backward booming and clients adopting the China-plus-one
integration, which has resulted in higher strategy, these figures seem within reach.
margins and enviable ROCE. The company’s However, there are key risks. First, Supriya’s
capital efficiency has enabled it to consistently
 reliance on a limited number of molecules
Stock Rating
outperform its competitors. Long-standing means its revenue is concentrated—any decline
customer relationships have further bolstered its in demand for these could hurt its business.
revenue consistency, giving it an edge in an 30.4 Second, the generic API market, particularly in
Current P/E
otherwise fragmented industry.The company’s regulated territories, is highly competitive. To
next leg of growth is expected to come by maintain its high ROCE, Supriya will need more
expanding into regulated markets and forward 54.1 than just scale—it needs to specialise or
integration into formulations in areas where it Justified P/E
differentiate in an increasingly competitive
already manufactures the APIs. Supriya has also landscape. In essence, Supriya must manage its
diversified into contract manufacturing. It has 43.3 concentration risk while carving out a more
spent `375 crore on capital expenditure since 5Y median sustainable path to growth or it risks being
ROCE (%)
FY23. However, scaling these businesses will overtaken by more agile competitors.

CLEAN SCIENCE AND TECHNOLOGY

Niche with a punch

Clean Science operates in the chemicals manufacturing friendly manufacturing process based on catalytic
space, with exports contributing 65 per cent of revenue chemistry continues to attract a broad client base.
(9M FY25) and India accounting for the remainder. Its Clean Science’s next major growth driver is hindered
largest segment is performance chemicals, making up amine light stabilisers (HALS), a segment with a global
69 per cent of revenue (9M FY25), followed by pharma market exceeding $1 billion and projected to grow at
and agrochemicals at 18 per cent, with FMCG rounding 10 per cent annually. HALS chemicals serve diverse
out the portfolio. end-user industries and with India being
The company’s biggest advantage lies in its  import-dependent, the company aims to
sharply curated product portfolio. While Stock Rating become the largest domestic player in this
specialty chemicals generally offer higher segment. Production has been commercialised
margins, Clean Science zeroes in on chemicals and revenues are expected to scale up in the
that satisfy two tough criteria: High complexity
48.4 coming years. This growth could not only help
Current P/E
that are relatively difficult to replicate and sustain its high ROCE but even improve it.
limited competition both domestically and The company’s main weakness, however, is
globally. In most of the products it 80.1 its concentrated portfolio. A decline in demand
Justified P/E
manufactures, the company commands a for even a single product can significantly dent
leadership position either in India or worldwide. its financial performance as seen in FY24.
This approach has helped it earn some of the 46.7 While current valuations appear expensive,
5Y median
highest operating margins in the Chemicals ROCE (%)
a positive outcome from its HALS strategy
sector. On top of this, its environmentally would go a long way in justifying them.

June 2025 Wealth Insight 45

Subscription copy of [[email protected]]. Redistribution prohibited.
 COVER STORY

MANKIND PHARMA

Domestic dynamo
Mankind Pharma has built a formidable franchise in into chronic and specialty therapies. The acquisition of
India’s domestic pharmaceutical market by adhering to a Panacea Biotec’s domestic formulations business for
focused playbook: Affordable medicines, mass-market `1,872 crore in 2022 provided a foothold in transplant and
appeal and deep retail penetration. The company stayed lifestyle drugs. The subsequent `13,630 crore takeover of
away from volatile export markets and focused on tier-2 Bharat Serums and Vaccines (BSV) in 2024 added
and tier-3 cities in India, resulting in over 95 per cent of exposure to niche, high-barrier segments like women’s
revenue from this geography. health and critical care.
Its strength lies in acute therapies like anti- The question is whether Mankind can sustain
infectives and gastroenterology, complemented
 this momentum. These new segments introduce
Stock Rating
by high-margin consumer health brands such as complexity, requiring greater R&D investment,
Manforce and Prega News. This combination has and clinical expertise. Moreover, integrating
helped it sustain strong profitability. During 48.8 large acquisitions like BSV brings execution
Current P/E
FY19-24, the company delivered a median ROE risks and could impact near-term performance.
(return on equity) of 26.7 per cent, driven by its Still, with its expansive domestic reach,
asset-light operations and disciplined capital 60.4 operational discipline and early investments in
allocation. Crucially, Mankind reinvests nearly Justified P/E
fast-growing therapy areas, Mankind is well
100 per cent of its profits, further fuelling its placed to maintain growth. While challenges lie
rapid expansion across therapy areas. 34.0 ahead, if it can preserve its return ratios and
To build long-term depth and reduce 5Y median capital discipline, it should continue generating
ROCE (%)
dependence on acute care, Mankind is moving long-term shareholder value.

BASF INDIA

Efficiency meets expansion

BASF India, the listed arm of German chemical titan BASF Looking ahead, BASF India is positioning itself to seize
SE, has operations spanning diverse sectors—nutrition growth in key pockets. It recently inaugurated an
and care (25 per cent), materials (23 per cent), chemicals advanced R&D and application lab in Chennai to cater to
(18 per cent), agricultural solutions (15 per cent), stricter automotive emission norms—a move that
industrial solutions (15 per cent)—serving industries from strengthens its relevance in the mobility space. In
automotive to pharma to construction and agriculture. agriculture, the company is broadening its portfolio
The company has carved out a reputation as one beyond crop protection, tapping into sustainable
of India’s most efficient chemical players, thanks  farming and climate-resilient products.
to its ability to grow without capital burnout. Stock Rating Industrial and construction solutions are also
Over the last five years, it has delivered a expanding, riding India’s infrastructure wave.
median ROE of nearly 28 per cent. This Yet challenges persist. Raw material price
performance stems not from using debt or
30.9 volatility, import reliance and regulatory
Current P/E
one-off gains but from savvy operating leverage, uncertainties pose risks. Still, if BASF India
asset-light expansions, tight inventory and cost maintains its capital discipline while capitalising
control. The company leverages its parent’s 37.0 on rising demand in agri-tech, mobility and
Justified P/E
global technology and expertise to stay manufacturing, it can continue compounding
competitive without having to invest in large, value without chasing reckless capacity growth.
capital-heavy facilities. Its Dahej facility, 36.5 Its proven formula steady growth and prudent
5Y median
launched in 2014, remains a benchmark for ROCE (%)
spending—remains its strongest weapon in a
scale and efficiency. competitive market.

46 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
CANTABIL RETAIL INDIA

Conquering small-city fashion

Cantabil Retail India has established itself as a prominent 62 per cent increase from current levels. To realise
player in India’s value fashion segment, offering a this goal, the company plans to open 70-80 new stores
comprehensive range of apparel and accessories for men, in 2025, enhancing its presence in emerging markets.
women and children. Men’s segment accounts for around Additionally, Cantabil is investing in product
85 per cent of its revenue. With a network of over 580 diversification, including accessories and innerwear,
exclusive brand outlets (EBOs) across 220 cities, the to increase wallet share and customer retention.
company has demonstrated consistent growth However, the company faces challenges such
through a vertically integrated model as rising raw material costs, competitive
encompassing design, manufacturing and retail.
 pressures from both organised and unorganised
Stock Rating
In FY24, Cantabil reported revenues of players and the need to maintain operational
`616 crore, marking an 11.5 per cent YoY efficiencies amid rapid expansion. Sustaining
increase. This growth was underpinned by a 27.2 its growth trajectory will require careful
Current P/E
robust ROE of around 23 per cent (similar to its management of these factors to preserve
five-year median), reflecting efficient capital profitability and shareholder value. In summary,
utilisation and profitability. Cantabil’s focus on 32.3 Cantabil’s disciplined focus on value fashion,
tier-2 and tier-3 cities has allowed it to tap into Justified P/E
efficient capital use and aggressive push into
underpenetrated markets, driving store underserved markets set it up well for future
expansion and revenue growth. 37.3 growth. But success will hinge on its ability to
Looking ahead, Cantabil aims to achieve 5Y median navigate cost pressures and competitive
ROCE (%)
`1,000 crore in revenue by FY27, representing a dynamics without sacrificing profitability.

SHIVALIK BIMETAL CONTROLS

Small parts, big impact

Shivalik Bimetal Controls is a specialised engineering shunt resistors, used in current sensing applications in
company that manufactures thermostatic bimetal strips, electric vehicles, energy meters and battery management
shunt resistors and other precision metal-joining systems. This segment has scaled up rapidly since its
products. These small but critical parts find use across launch in FY15 and is now one of the largest contributors
sectors such as automotive, consumer electronics, smart to revenue. Meanwhile, Shivalik remains a dominant
metering and renewable energy systems. The company’s supplier of thermostatic bimetal strips to major switchgear
strategy has been focused on offering highly and circuit breaker makers. Looking ahead,
engineered products for applications where  Shivalik is expanding its global footprint,
quality is non-negotiable. Stock Rating especially in Europe, through its subsidiary in
Over the years, Shivalik has demonstrated an Italy. It is also working on building new
impressive track record of capital-efficient capabilities in alloy processing and component
growth. Over the last five years, it has delivered a
30.6 design to meet demand from sectors like EVs,
Current P/E
median ROE of nearly 28 per cent, a reflection of solar and industrial automation.
its pricing power, operational efficiency and low That said, the company faces risks such as
capital intensity. It has historically reinvested 30.9 dependence on a few large clients, raw material
Justified P/E
most of its earnings to support capacity price volatility and competition from global
expansions and technology upgrades, yet has peers. Yet, backed by engineering prowess,
maintained a conservative balance sheet with 33.0 prudent capital management and a growing
5Y median
minimal debt. ROCE (%)
export pipeline, Shivalik seems poised for
A key driver of its recent growth has been steady, compounded growth in the coming years.

June 2025 Wealth Insight 47

Subscription copy of [[email protected]]. Redistribution prohibited.
 COVER STORY

DR AGARWAL’S EYE HOSPITAL

Eyes on the prize

Dr Agarwal’s Eye Hospital, a Chennai-based equipment. The company also follows a lease-and-operate
ophthalmology chain, has built a reputation for delivering model for many of its centres, limiting upfront capex.
high-quality, specialised eye care across India. With a These measures, along with short payback periods of 18 to
network of over 100 hospitals, the company offers a full 24 months for new centres, have helped maintain capital
range of services—from cataract and glaucoma surgeries efficiency even as the footprint expanded.
to retina, cornea and LASIK procedures. Surgeries Looking ahead, the company plans to double its
contribute roughly 65 per cent of revenue, network to 420 centres by FY28, with a target of
followed by diagnostics and consultations 500 by FY30. Backed by more than `1,000 crore
(20.6 per cent) and pharmacy and optical sales
 funding from TPG and Temasek, the company is
Stock Rating
(14.3 per cent). investing in technology, talent and deeper
What makes Dr Agarwal’s story remarkable penetration in tier-2 and tier-3 cities.
is its ability to scale a capital-intensive business 38.6 That said, rapid expansion brings challenges,
Current P/E
while maintaining healthy return ratios. Its especially in maintaining clinical quality,
five-year median ROE was an impressive optimising staff costs and ensuring returns don’t
34.3 per cent for FY19-24. This has been 59.9 dilute. The high promoter pledge of 55.4 per cent
achieved through a cluster-based expansion Justified P/E
remains a point of concern that deserves to be
model, where each region has a flagship watched out. Still, Dr Agarwal’s stands out as a
hospital supported by satellite centres— 39.9 rare healthcare success story, compounding
reducing infrastructure duplication and 5Y median steadily through clinical excellence, operational
ROCE (%)
enabling better utilisation of surgical talent and discipline and strategic expansion.

Subscribe Now BUY A NEW

SUBSCRIPTION

Ideas for savvy stock investors DIGITAL

1 year for `899
Start my subscription from 6DYH

Name (Mr/Mrs/Ms) 3 year for `2,199

6DYH
Address

PRINT+DIGITAL
1 year for `1,299

State Pin Code 3 year for `3,299

Phone E-mail
Delivery by courier
Cheque Number Date
Savings calculated with respect
Bank & Branch to the single-issue price of `125.

Payable to Value Research India Pvt. Ltd., New Delhi

C-103, Sector 65, Noida - 201301

www.vro.in +91-9999322422
[email protected]

48 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 STRAIGHT TALK

How Trump is reviving

Nixon’s 1971 shock therapy
What Nixon did with gold, Trump may do with trade. The global world
order might be in for a reset again.
avoid a recession and restore US economic dominance.
At Camp David, Nixon and advisors like Treasury
Secretary John Connally, Federal Reserve Chairman
Arthur Burns and Paul Volcker debated fiercely. The
outcome, announced on August 15, 1971, was the New
Economic Policy: The US suspended dollar
By convertibility to gold, imposed a 10 per cent import tax
Anand and enacted a 90-day wage and price freeze to curb
Tandon inflation. These measures, dubbed the ‘Nixon Shock’,
effectively dismantled Bretton Woods, ushering in an
era of floating exchange rates. Domestically, the policy

I
n August 1971, a secretive meeting at Camp David, was a political triumph – Wall Street surged 3 per cent,
led by President Richard Nixon, reshaped the global its biggest daily gain at the time. Internationally,
economy in ways that still echo today. Chronicled in however, allies like Japan and Europe were furious at
Jeffrey E Garten’s ‘Three Days at Camp David: How a the unilateral move, which disrupted their economies
Secret Meeting in 1971 Transformed the Global and forced currency revaluations.
Economy’, the decisions made over that weekend – The Nixon Shock had profound long-term effects.
known as the Nixon Shock – ended the Bretton Woods While it boosted US exports by devaluing the dollar, it
system, severed the US dollar’s link to gold and triggered global market volatility, contributed to 1970s
introduced floating exchange rates. Fast forward to stagflation and set the stage for the fiat currency system
2025, and the US is once again stirring global markets we know today. Garten argues that the shift marked the
with President Trump’s aggressive tariff policies and US’s recognition that it could no longer single-handedly
proposed tax reforms. Mark Twain once said, “History sustain the global economy, necessitating cooperation
doesn’t repeat itself, but it often rhymes.” Let’s examine with allies – a lesson that resonates in today’s
how closely it does. interconnected markets.

A historical turning point The 2025 US economic backdrop and

In his book, Garten, a former Yale School of Trump’s policies
Management dean and seasoned policymaker, recounts In 2025, the US economy faces challenges that echo
the economic and political pressures that drove Nixon’s 1971, though with distinct modern twists. Inflation,
bold moves in 1971. The US was grappling with a while moderated from its post-Covid peaks, remains a
weakening dollar, soaring trade deficits and rising
inflation, exacerbated by the Vietnam War and the
economic resurgence of Japan and Western Europe. The
Bretton Woods system, which pegged global currencies The Nixon Shock had profound long-term
to the dollar (convertible to gold at $35 per ounce), was effects. While it boosted US exports by
crumbling. US gold reserves had plummeted to devaluing the dollar, it triggered global
$10 billion against $40 billion in liabilities, as foreign
market volatility.
nations demanded gold for their dollar holdings. Nixon,
facing re-election in 1972, sought a dramatic solution to

June 2025 Wealth Insight 49

Subscription copy of [[email protected]]. Redistribution prohibited.
 STRAIGHT TALK

Illustration: ANAND

concern. Trade deficits persist, particularly with China significant, with trading partners like China and the EU
and the US dollar’s dominance as the world’s reserve already signalling retaliatory measures.
currency is under scrutiny amid rising global debt and
geopolitical tensions. The political landscape is also 1971 vs 2025: Parallels and divergences
charged, with Trump’s second term prioritising The Nixon Shock and Trump’s tariff policies share
‘America First’ policies to bolster domestic striking similarities. Both were unilateral, catching
manufacturing and reduce reliance on imports. allies off guard and prioritising domestic political
Trump’s economic agenda, announced in early 2025, optics over international consensus. Nixon’s import
includes steep tariffs – 145 per cent on Chinese goods, tax and Trump’s tariffs both aim to protect US
26 per cent on Indian exports and broad levies on other industries and reduce trade deficits. Both policies also
trading partners. These measures, likened to the Nixon risk inflation: Nixon’s wage and price controls
Shock for their unilateral boldness, aim to address trade temporarily curbed prices but fuelled stagflation,
imbalances and stimulate US production. The Budget while Trump’s tariffs are projected to drive consumer
Lab at Yale estimates these tariffs will raise US inflation price hikes. Additionally, both moments reflect a US
by 3 per cent in the short term, reduce GDP growth by grappling with its role in a multipolar economic world,
1.1 percentage points in 2025, and increase apparel as rising powers (Japan and Germany in 1971, China
prices by 65 per cent (25 per cent in the long term) and India today) challenge its dominance.
(https://bit.ly/42PrIpZ). Like Nixon, Trump is betting on However, key differences exist. Nixon’s policies
domestic political gains, but the global fallout could be targeted the monetary system, fundamentally altering
global finance by ending the gold standard. Trump’s
tariffs, while disruptive, focus on trade and fiscal policy,
leaving the dollar’s reserve status intact for now. The
The Nixon Shock and Trump’s tariff 1971 US faced a gold reserve crisis, whereas today’s
policies share striking similarities. Both concerns centre on supply chain resilience and
were unilateral, catching allies off guard geopolitical rivalries. Nixon’s era lacked the globalised
supply chains and digital economies that amplify the
and prioritising domestic political optics.
impact of 2025’s trade disruptions. Moreover, Nixon’s
policies unfolded in a relatively cooperative post-war

50 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 26 per cent tariff on Indian exports, it could lead to a
broader trade war, disrupting global supply chains and
If negotiations fail and the US imposes the raising input costs. The IMF’s April 2025 World
full 26 per cent tariff, it could lead to a Economic Outlook projects a 0.8 per cent global growth
downgrade due to tariffs, with India’s growth revised
broader trade war, disrupting global supply
down to 6.3-6.5 per cent. The Indian stock market
chains and raising input costs. could face a correction, especially in export-heavy
sectors like Auto and Chemicals. A stronger dollar and
rupee volatility could further pressure valuations.
order, while Trump operates in a fragmented world Investors should hedge with gold (up 400 per cent post-
marked by trade wars and regional conflicts. Nixon Shock) and focus on domestic-focused stocks.

Potential scenarios and their impact on the Scenario 3: Global recession triggered by
Indian stock market US policies
The interplay of Trump’s tariffs and India’s economic In a worst-case scenario, US tariffs and fiscal uncertainty
trajectory could unfold in several ways, each with (the Senate’s $5.8 trillion deficit-expanding tax plan)
distinct implications for the Indian stock market, could tip the US and Europe into recession, as ICG’s
which has shown resilience but remains sensitive to April 2025 outlook warned. India, with only 3 per cent of
global shocks. its GDP exposed to US goods exports, is less vulnerable
than peers like Vietnam but not immune (https://bit.
Scenario 1: Successful US-India ly/4325RdB). A US market crash could drag the Nifty 50
trade negotiations down by 10-15 per cent, hitting the mid- and small-cap
If India negotiates effectively, convincing the US to stocks hardest. Sectors like IT, reliant on US clients,
maintain or reduce tariffs on Indian exports (e.g., could suffer. Investors should diversify into bonds
keeping the effective rate at 12.2 per cent rather than (Indian government bonds join FTSE indices in
26 per cent), the impact could be positive. Deloitte’s September 2025, boosting inflows) and defensive assets
India Economic Outlook (May 2025) (https://bit. like gold and utilities.
ly/4k937lI) suggests that such a deal could boost Indian
exports in textiles and electronics, especially if The takeaway
competitors like China face steeper tariffs. Increased The Nixon Shock of 1971 and Trump’s tariff policies of
consumer spending from India’s 2025 Union Budget tax 2025 underscore the US’s outsized influence on global
exemptions could drive GDP growth by 0.6-0.7 per cent. markets. While Nixon’s policies birthed the modern
The Nifty 50 and Sensex could see sustained gains in financial system, Trump’s protectionism could reshape
this scenario, particularly in export-oriented sectors like trade and inflation dynamics. For Indian investors, the
IT, Pharmaceuticals and Textiles. Domestic sectors like key is to balance caution with opportunity. By learning
Banking would also benefit. from history and aligning portfolios with India’s
structural strengths, investors can navigate the
Scenario 2: Escalating the trade war turbulence and position themselves for long-term gains
If negotiations fail and the US imposes the full in a rapidly changing world.

Invest like pros

Learn the craft of investing by reading about the
investment styles of world-class money managers

https://shop.valueresearchonline.com/store/

Subscription copy of [[email protected]]. Redistribution prohibited.

Stay the
course
Markets rise and fall, but disciplined,
low-cost investors stay calm

THE INDEX INVESTOR

Subscription copy of [[email protected]]. Redistribution prohibited.
 Scan here

Subscription copy of [[email protected]]. Redistribution prohibited.

 INDEX INVESTOR

Gold and silver ETFs surge:

What investors must know
Akshaya Tritiya saw a rise in their volumes. But should you invest?

A
kshaya Tritiya, one of 5-10 per cent, storage costs and liquidity plays a huge role in
India’s most auspicious potential resale discounts. By determining how efficiently you
days for buying gold, has contrast, ETFs have relatively low can trade an ETF. Here’s why.
long been a magnet for jewellers. expense ratios, often below Lower impact costs: In less liquid
But this festive day is increasingly 1 per cent and are much easier to ETFs, large trades can move the
making its presence felt in financial trade on the exchange. market, meaning you end up
markets, too. More Indian investors Growing awareness: Investors are paying a hidden cost called
are now turning to exchange-traded increasingly aware of ETFs’ ‘impact cost’. On Akshaya Tritiya
funds (ETFs), particularly gold and advantages, particularly their 2025, gold ETFs in India showed
silver, as a modern alternative to liquidity, which ensures better an average impact cost of 20 basis
owning the physical metals. trade execution and lower hidden points (bps), while the most liquid
The latest numbers underscore costs. For context, back in FY25, ones brought this down to just
this shift: total turnover in gold the average daily combined 2 bps. For silver ETFs, the
and silver ETFs on Akshaya Tritiya industry volume (gold plus silver industry average was 32 bps, but
(April 30, 2025) hit `644 crore, ETFs) hovered around 60 per cent the best performers kept it as
almost three times last year’s level of the total ETF turnover, reflecting low as 3 bps.
of `224 crore. Gold ETFs saw their the growing footprint of these Reduced tracking error: High
turnover rise to `331 crore (from products in the Indian market. liquidity helps keep ETF prices
`130 crore last year), while silver closely aligned with the underlying
ETFs surged to `313 crore (from Why liquidity matters gold or silver price, ensuring your
`95 crore), marking an even Many investors may assume that investment behaves as expected.
higher jump. all ETFs are equal. However, A look at past Akshaya Tritiya
These numbers tell a broader
story about changing investor
habits and the growing role of ETFs Gold ETFs’ turnover share on Akshaya Tritiya
in the portfolios of Indian investors. zN
ippon zH
DFC zS
BI z I
CICI zA
xis
India ETF Gold Gold Pru Gold Gold
Share in
Gold BeES ETF ETF ETF ETF z Others
What’s driving this surge? industry
turnover (%)
Several key trends are fuelling this
rise in ETF activity:
Apr 30, 2025 51.9 11.9 8.4 8.3 15.5
Convenience over tradition: While
4.0
gold jewellery still holds cultural
value, many investors now want May 10, 2024 54.6 7.5 5.7 5.3 26.0
price exposure without the 1.0
baggage of storage, insurance
Apr 21, 2023 80.0 5.2 4.4 4.3 5.1
or purity concerns. Gold and
silver ETFs offer precisely that, 1.0
allowing you to invest through May 4, 2022 51.0 14.9 17.1 5.1 10.5
your demat account.
1.5
Cost efficiency: Physical gold Source: NSE

typically carries making charges of

54 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 INDEX INVESTOR

AI-generated image

data shows that liquidity patterns blindly. Instead, investors should equities have outperformed
are fairly consistent. For example, ask: what role do these assets play precious metals. For instance, over
on May 10, 2024, gold ETFs saw a in my portfolio? the past decade, gold has delivered
turnover of `130 crore, and by Historically, precious metals annualised returns of around
April 30, 2025, this had climbed to have served as: 7-8 per cent, while Indian equity
`331 crore. Yet the most liquid Diversifiers: Gold and silver markets (such as the Nifty 50)
products maintained low impact historically show low correlation to returned closer to 12-14 per cent.
costs even at higher trade volumes. equities, making them useful for
reducing portfolio risk. Key considerations for
Should you invest in gold Hedges: Precious metals perform investors
or silver ETFs? better during inflationary periods If you’re considering adding gold or
The growing popularity of gold or when geopolitical risks rise. silver ETFs to your portfolio, keep
and silver ETFs shouldn’t be However, they are not primary these points in mind:
mistaken for a sign to hoard them wealth creators. Over long periods, Match your allocation to your goals:
Most investors don’t need more
than 5-10 per cent of their portfolio
Silver ETFs’ turnover share on Akshaya Tritiya in precious metals. Their main role
zN
ippon z I
CICI Pru zH
DFC zA
BSL zD
SP is to provide stability, not growth.
Share in India Silver Silver Silver Silver Compare costs and liquidity: Look
industry Silver ETF ETF ETF ETF ETF z Others
beyond brand names. Examine the
turnover (%)
ETF’s liquidity, impact costs,
expense ratios and tracking errors
Apr 30, 2025 74.3 8.2 6.0 5.9
before investing.
3.4 2.3 Thin klong-term: Don’t make
May 10, 2024 58.4 8.6 21.4 6.1 decisions based solely on festive
1.9 3.5
hype or short-term market
momentum. Gold and silver
Apr 21, 2023 67.9 6.9 10.9 13.5
work best in a carefully
0.3 0.5 planned, diversified portfolio.
May 4, 2022 27.0 62.6 10.3 As always, disciplined,
well-researched investing beats
Source: NSE short-term enthusiasm on
Akshaya Tritiya or any other day.

June 2025 Wealth Insight 55

Subscription copy of [[email protected]]. Redistribution prohibited.
 STOCK ADVISOR

Round numbers, rough roads

Big round numbers make for exciting headlines, but real investors
know the real game is played quietly, steadily and over time
The danger of anchoring to numbers
Milestones can be helpful markers of long-term
progress. But they can also be dangerous anchors.
Investors often treat a round number like a finish line:
“I’ll sell when it hits one lakh” Or worse: “I’ll wait to
invest until the market dips again.”
By Here’s the truth: The market doesn’t care about
your round numbers. It may inch up to 99,000 and
Dhirendra
drop. Or it may shoot past one lakh and keep going.
Kumar

A
few days ago, I was at a casual dinner when
someone brought up a Morgan Stanley report.
“They’re saying Sensex can touch one lakh in
two years,” he said, with a glint of excitement in his
eyes. “What a time to be in the market!”
Another friend, clearly less impressed, argued,
“That’s only 33 per cent from here. My mid-cap fund
did that last year.”
That small exchange captures two types of investors
perfectly. One is thrilled by the number. The other is
focused on returns. Both are right in their own way,
but only one of them is asking the right questions.

The magic of round numbers

There’s something special about round numbers. One
lakh on the Sensex isn’t just another level, it’s a
milestone. It makes headlines, triggers celebrations
and inspires bold predictions.
In fact, every 10,000-point mark on the Sensex has
done this. I still remember the breathless enthusiasm
when the index crossed 10,000. Then 30,000. Then
50,000. And now, at 80,000, the conversation has
shifted to: When do we see six figures?
But here’s the thing—if you have been investing
for long enough, you realise that these milestones,
while emotionally satisfying, are just waypoints.
What really matters is what you did on the way to
each of them. Did you stay invested? Did you invest
regularly? Did you own good companies?
Did you ignore the noise? If yes, then you have
already benefitted. If not, then waiting for the
next milestone won’t help.

56 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
And then drop. And then rise again. That’s how
markets work. If you are treating investing like a
game of predicting milestones, you’ll spend most of Instead of obsessing over whether
your time waiting, second-guessing and stressing. the Sensex will touch one lakh in 2026
And the more you try to outsmart the market, the less or 2027, focus on building a portfolio that
you gain from it.
will do well when the market gets there
What you should focus on instead
There’s a better way. Instead of obsessing over whether
the Sensex will touch one lakh in 2026 or 2027, focus on index stands
building a portfolio that will do well when the market gets z Ignore short-term noise
there, whenever that may be. z Don’t wait for perfect timing; focus on consistency
What does that mean? That’s it. That’s the real formula. And it’s not flashy. It
z Own high-quality businesses with strong fundamentals won’t make you sound like a market genius at dinner
z Diversify across sectors parties. But it works.
z Keep investing regularly, regardless of where the
How Stock Advisor keeps you on course
At Value Research Stock Advisor, we have seen
milestones come and go. We don’t get distracted by
them. Our focus is on curating portfolios that deliver
over the long haul.
Whether Sensex is at 80,000 or one lakh, our
Long-term Growth, Aggressive Growth and Dividend
Growth portfolios are built with one purpose: To help
you own businesses that will create wealth across
market cycles.
We don’t time the market, we analyse businesses.
We don’t chase highs, we look for durability. And we
don’t ask “Will Sensex hit one lakh?” We ask, “Will this
company thrive in the next 5-10 years?”
That question, consistently asked and thoughtfully
answered, matters far more than the milestone.
Every month, we revisit our recommendations, tweak
portfolios if needed and ensure that the businesses we
back are still worthy of your money and your trust.

The finish line is an illusion

If the Sensex hits one lakh in 2026, it’ll be a nice
headline. But the real question is: What’s next?
Because there is no finish line in investing. Every
milestone is followed by a journey. And unless you have a
process that helps you walk that journey—calmly,
regularly and confidently—you’ll always be chasing
numbers instead of creating wealth.
So, whether we are at 80,000 or 95,000, your job
remains the same: keep investing wisely, avoid
distractions and let time do its magic. Because the real
magic of the Sensex is not that it may reach one lakh, it’s
that it started at 100 in 1979. Everything since has been
a reward for those who stayed the course.
Illustration: ANAND

June 2025 Wealth Insight 57

Subscription copy of [[email protected]]. Redistribution prohibited.
 EVERYDAY ECONOMICS

The digital shift powering

small business recovery
Technology is empowering small firms but policy barriers limit the gains

1,002. The sample covered small businesses from six

broad product categories: sports goods, toys,
processed and preserved food products, apparel,
furniture and handicraft products. They were picked
from Ahmedabad, Bhubaneshwar, Delhi, Jaipur,
Lucknow, Ludhiana, Jalandhar, Agra, Meerut,
Saharanpur and Chennai.
By Small firms dominate India’s enterprise landscape.
Puja Of these, a vast majority – 63.4 million, as per
Mehra government data – is unincorporated and in the
informal sector. A small proportion – 17.6 million

T
he general perception is that small businesses roughly – is registered on the Udyam portal, a
are in distress, more so after the blow of the government facility that provides them with a
Covid-19 lockdowns, from which their recovery permanent registration and basic identification
has been slow. However, the findings from a new survey number, which helps them borrow from banks under
of such firms, led by my colleague, Dr Tanu Goyal, at the stipulated priority-sector lending quota. It also
ICRIER, have challenged these notions (https://bit. helps them avail of credit guarantees, be eligible for
ly/4diX9N1). public procurement policy and seek protection against
This survey shows that firms that started selling delayed payments under various government schemes
online through e-commerce websites have significantly and programmes on offer.
improved their performance. Their sales and profit Given this vast universe, the sample size is, of
margins have increased, and they are hiring more than course, small – just about 2,365 small businesses that
those businesses that aren’t selling to online shoppers are registered on the government portal, Udyam,
as yet. were covered this year in the survey’s third round.
This is the third round of the survey, first done in However, the findings are hard to take lightly: More
2021, to help assess the fallout of the Covid-19 than 85 per cent of the firms that have gotten onto
lockdowns on small businesses. More or less, the same e-commerce platforms report an increase in their total
firms are tracked in the survey every year, which makes sales and profit margins post-integration. Typically,
their findings all the more valuable and insightful for these are up 30 per cent.
understanding their growth and development. This year’s survey has evaluated some of the second-
The first edition had shown that by selling online, order effects digitalisation has had on small businesses;
firms tried to keep afloat amid restrictions on the
physical movement of goods and people. At that time,
getting onto e-commerce platforms was a survival
Staying offline may not be an option
strategy to beat the stoppage of usual business by
accessing new markets and consumers. for long. Technology may represent
The second round of the survey, conducted in 2022, a survival threat rather than an
also included those firms that had still not done this. opportunity. Raising finance would get
The idea was to draw comparisons between the two
easier by hopping online.
sets, those selling online – 1,005 of the enterprises
surveyed – and those that still weren’t, the remaining

58 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 Illustration: ANAND

Improvements in access to finance and international consumers. Small producers have been slow to tap
export markets emerge as clear gains. Broadly the gains due to the structural and legacy market
speaking, the survey has shown that upgrades in access barriers, such as obtaining bank credit at
investments, soft skills, complex infrastructure and market rates. The big promise of digitalisation was
innovation are taking place in small businesses that breakthroughs against these and similar other
have diversified into online sales. Some are also hiring bottlenecks. Digitalisation seems to have begun
more, creating employment. delivering on that promise.
The firms told the survey that they invest in The bulk of small firms – termed ‘dwarf firms’ by the
employee training and new equipment, machinery Economic Survey – tends to remain chronically small
and software. They have launched new products, over time because of the inherent biases and
improved product design and adopted new business weaknesses in the operational and policy ecosystem.
practices and organisational methods after joining Firms can barely take advantage of the various
e-commerce platforms. government schemes and programmes available
Unsurprisingly, most of the surveyed firms’ most because a small proportion of the universe of small
frequently used modes of payment for doing business businesses is registered on the Udyam portal.
are digital wallets and mobile payments, since they help Economies of scale of the sort firms in China enjoy
with productivity gains and growth opportunities. Their are hardly possible in India. The playing field isn’t level
digital footprint acts as collateral when obtaining loans, between the small- and large-sized businesses. Small
as it establishes borrowers’ creditworthiness. businesses tend to feel the compliance burden of rules
The firms transacting on e-commerce platforms and regulations disproportionately. In many ways, the
report that they are taking more loans, and say that policy system encourages firms to remain small.
obtaining the loans has become easier. Borrowing from Crucially for policymakers, the other message of the
fintech companies or non-banking financial survey is that while small businesses can exploit their
corporations is made relatively easier for them as they growth potential more fully by digitalising, that alone
can directly link their earnings to their loan accounts, isn’t sufficient. Several bottlenecks can’t be overcome
which then serves as guarantees, precluding the need even by going online, like power tariffs, which tend to
for collateral. rise with firm size in many states.
Staying offline may not be an option for long. Lastly, for all its advantages, digitalisation itself
Technology may represent a survival threat rather than poses challenges. Many of the firms surveyed said that
an opportunity. Raising finance would get easier by their decision not to join platforms is primarily due to
hopping online, said those small businesses that insufficient knowledge and information about digital
haven’t yet. Technology-savvy competitors may make technologies and e-commerce platforms.
inroads into markets irreversibly.
Puja Mehra is a Delhi-based journalist and the author of
Since the 1991 reforms, developing markets have ‘The Lost Decade (2008-18): How the India Growth Story
disproportionately benefited large firms and Devolved into Growth Without a Story’

June 2025 Wealth Insight 59

Subscription copy of [[email protected]]. Redistribution prohibited.
 INVESTMENT ACORNS

A bend in the road

The nature of markets: Predictably unpredictable

manipulated. Volatility, like the curves in a road or the

waves in an ocean, is a sign of vitality.

Stop seeking absolutes; learn to think

By in probabilities
Aashi
Aashish P Somaiyaa We live in a world where people demand clarity: “Will
the market go up or down?”, “Which fund is the
best?” Unfortunately, there are no certainties in the
investing world – only probabilities.
I often joke that human beings are deterministic –
they want clean, binary answers. But the world

O
ver the last 25 years that I have been in asset operates in shades of grey. We want black-or-white
management, one truth has never changed: answers to questions that don’t have them. In reality,
Markets are full of surprises. You think they’ll the successful investor is not the one with absolute
rise, they fall. You fear they’ll crash; they rally. Many clarity but the one who is open-minded and
investors try to ‘figure it out’, hoping for some probabilistic. The one who knows there will be bends
formula or certainty. But the truth is that markets are and negotiating them needs agility, not forecasting
not machines with defined inputs and outputs. They the precise nature of the next bend.
are living ecosystems, influenced not just by earnings
and interest rates but by human behaviour – full of You don’t need perfect timing, you
emotion, psychology and reactions to the unknown. need participation
When I say, “a bend in the road is not the end of Here’s something from my early days in Mumbai: If
the road,” I don’t say it for dramatic effect. I say it you want to go from Goregaon to Churchgate at
because it is a deeply profound way to look at 7:30 am, you won’t get the perfect train to get fast to
investing. A bend doesn’t signal the journey’s over; it Churchgate; most fast trains don’t stop there, and any
signals a change in direction, a moment to stay alert that do are overcrowded. Sometimes, you board the
and not panic. It’s during these moments of train that goes in the opposite direction first, get a
uncertainty that true resilience and adaptability are seat at Borivali and then continue to head in the right
tested and often rewarded. direction more comfortably and be assured of safe
arrival at the final destination.
Bends are features, not flaws In investing, too, the perfect entry point doesn’t
Let’s be honest: If there were no bends, there would exist. Markets don’t toot a horn before going up. If
be no roads. A road that’s perfectly straight and you’re waiting for the ‘right moment,’ you might just
unchanging doesn’t exist, and if it did, we would give miss the train altogether.
up on such a journey out of sheer boredom or the
feeling of being directionless and getting nowhere at
the end of what seems like an endless journey. Just
like in life, in the markets too, change is constant. The The successful investor is open-minded
problem is that we often see bends as something to and probabilistic. The one who knows
fear rather than something to navigate and possibly there will be bends and negotiating
find key milestones around the corner.
them needs agility, not forecasting the
Just imagine if an ECG showed a flat line – it would
be a cause for alarm. Similarly, a market without precise nature of the next bend.
volatility, without ups and downs, is either dead or

60 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
 AI-generated image

The escalator metaphor: Wealth creation is is about optimising, it is not maximising. Often,
frictionless if you stay on Mr Market minimises people who try to maximise.
If you simply step onto an escalator, you rise. Our So, optimise; that’s how to stay in the game and
economy is like that. Over the long term, GDP grows, reach your goals.
earnings grow and markets follow. If you had done
nothing and stayed invested since liberalisation, your Final thoughts: Don’t seek clarity;
wealth would’ve doubled every 5-6 years on average. seek preparation
Yet, how many people actually double their money Many investors ask their advisors for clarity: “Tell me
every five years? Why don’t more people benefit from what will happen.” But no one can. What a good
this upward movement? Because they jump off. They advisor can give you is preparation, not prediction.
overthink. They fear. They wait. Or worse, they try to Markets will always surprise us – sometimes for the
come down the escalator that is moving up. When better, sometimes for the worse. The right lesson to
markets don’t move or move down for a bit, people learn from surprise is not “Next time, I’ll be ready.”
think they will get off and get back later. When Instead, it is, “The world is inherently surprising, and
markets rise, people show the urge to rise faster. I will remain prepared for whatever comes.”

The wiper effect: Chasing what To the long-term investor

worked yesterday Markets move like a rising sine wave. Each dip feels
Many investors behave like windshield wipers. like doom, but it’s part of the ascent. In hindsight,
They swing from one side to the other – buying every past correction looks like a missed opportunity.
what’s worked recently, only to abandon it when Remember March 2020? Missed opportunity in 2022?
it stops working. Perhaps April 2025 will be one too.
Last year, pharma was hot. Before that, it was PSU Don’t be the one watching from the sidelines. Don’t
banks. This year, it might be autos or defence. Every overthink the bend. Don’t chase, don’t fear. Just stay
time you chase the latest winner, you risk arriving on the road. Stay invested.
late. The best-performing sector or fund of the past Because a bend in the road is not the end of the
often underperforms going forward. road – unless you are inflexible, you made a forecast
What you should seek is consistency, not peak ready to steer accordingly, but it turned the other way,
performance. Find managers, funds and strategies or you are sleeping at the wheel and fail to turn.
that steadily do well – not the ones who are only Aashish P Somaiyaa spearheads WhiteOak Capital Asset
occasionally at the top. Investing and asset allocation Management Limited as their CEO.

June 2025 Wealth Insight 61

Subscription copy of [[email protected]]. Redistribution prohibited.
 STOCK SCREEN

Blue chips and quality

stocks at bargain
Stock screens to filter attractive large caps and fairly priced quality stocks

A
stock screen filters out companies based on are available at cheap valuations.
certain criteria. Its main advantage is that it helps Attractive blue chips: Blue-chip stocks are the largest
you generate stock ideas with just a few clicks. and the most consistently profitable companies.
Once you have the list of ‘deserving’ stocks, you can Owing to their strong balance sheet and high market
research them further to find the ones worth investing share, they are less risky than their smaller
in. The Value Research website provides you counterparts. However, these stocks have already
many ready-made stock screens. This been ‘discovered’ (i.e., known to most
month, we will be covering two such investors). For this reason, they generally
screens: ‘Attractive blue chips’ and trade at a premium.
‘Discount-to-book value’. We have also Quality stocks for cheap: A core
given a concise stock list from the principle that we follow when looking
other screens. To get the full list in real for stocks is that quality cannot be
time, visit www.valueresearchonline. compromised for reasonable prices.
com/stocks/selector. What we mean by quality is not just solid
financial metrics but also business
What do these screens offer? fundamentals related to management
The first screen gives blue-chip companies at transparency, accounting practices, among
attractive valuations, while the second screen offers others. So, we look for companies that fulfil the quality
companies that pass the basic quality parameters and criteria while being fairly priced.

Key terms
M-cap
the EPS (earnings per share) performance as compared to company has been able to
Stands for market growth of a stock. that in the previous year. It utilise investors’ money.
capitalisation. Obtained by Demonstrates how high a thus, points out the current EPS growth (%)

multiplying the stock price by price we are paying for the outperformer in terms of The three-year annualised
the total number of shares. growth that we are profitability and financial growth rate of a company’s
Shows a company’s market purchasing. In all our analyses, improvement. An F-Score of earnings per share (EPS).
value or size. we have taken five-year seven or above is good.
Stock Style

Price to earnings (P/E)
historic EPS growth. Stock rating
Derived from a combination of
The price-to-earnings ratio is Altman Z-score
Value Research Stock Rating the stock’s valuation – growth
simply the ratio of the price of Developed by Edward Altman combines the three scores or value – and its market
a stock to its earnings per of New York University, the (quality, growth and valuation) capitalisation – large, mid and
share. It shows in multiples Z-Score predicts a company’s based on assigned weights to small. For example, here is the
how much investors are willing financial distress or the arrive at a holistic stock rating. stock style of a large-cap
to pay for the earnings. High possibility of its going We have created a five-star growth stock.
growth companies are bankrupt within two years. rating system. The higher the
assumed to have higher P/Es A Z-Score of more than three stock rating, the better. Growth Value
while low-growth companies is desirable. Return on equity (ROE)
Large
have relatively lower P/E.
Piotroski F-score
Measured by taking profit
Mid
Price-earnings to growth Developed by Joseph after tax as a percentage of
ratio (PEG)
Piotroski, the F-Score the net worth of the company. Small
Ratio of price to earnings to highlights financial Indicates how efficiently the

62 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Attractive blue chips No. of companies that
cleared the filters
Reasons to invest The filters 461
Liquidity Market cap greater than EPS 5Y growth more than 419

Large companies in `12,572 crore 20 per cent 348

respective businesses D/E 0 to 2 PEG (5Y) 0 to 1.5 122

Strong balance sheets Interest coverage ratio more 5Y ROE consistency without 50
than 2 losing 20 per cent YoY 10
Liked by institutions
ROE 5Y avg more than 5
20 per cent

Company Stock Debt-equity 5Y avg 5Y EPS M-cap Share 52-week

Industry Style Stock Rating P/E PEG ratio RoE (%) growth (%) (` cr) price (`) high/low (`)

BEL
Defence & Aerospace Div.  49.9 1.49 0.0 21.4 23.9 2,65,747 365 374-230

BLS International
IT Services & Consulting  32.3 0.52 0.0 21.6 57.4 16,398 401 522-278

CAMS
Clearing & Settlement  41.5 1.26 0.0 42.2 21.1 19,526 3,926 5,368-3,031

KPIT Technologies
Software  43.9 1.07 0.0 21.7 41.5 36,890 1,349 1,929-1,021

Waaree Energies
Renewable Energy Equip. Unrated 45.4 0.37 0.2 27.4 62.3 84,690 2,934 3,743-1,863

Quality stocks available cheap

No. of companies that
Reasons to invest The filters cleared the filters
Liquidity Market cap more than Earnings yield more than 1,795
Large companies in `500 crore 5 per cent 1,384
respective businesses Z-score greater than 2.99 PEG ratio between 0 to 1 256
Strong balance sheets F-score greater than 7 P/E to median P/E less than 233
C-score less than 4 1.5 times 80
Liked by institutions
25
21

Company Stock Altman Piotroski Modified Earnings P/E to Share 52-week

Industry Style Stock Rating Z-Score F-Score C-Score yield (%) median P/E M-cap (` cr) price (`) high/low (`)

ADC India
IT Services & Consulting  19.6 8 2 7.0 0.7 586 1,242 2,310-901

AGI Greenpac
Containers & Packaging - Div  4.2 8 1 8.8 1.0 5,555 871 1,308-599

June 2025 Wealth Insight 63

Subscription copy of [[email protected]]. Redistribution prohibited.
 STOCK SCREEN

Company Stock Altman Piotroski Modified Earnings P/E to Share 52-week

Industry Style Stock Rating Z-Score F-Score C-Score yield (%) median P/E M-cap (` cr) price (`) high/low (`)

Andhra Petrochemicals
Petrochemical  5.3 8 2 105.3 1.2 521 61 127-48

Bombay Burmah Trading

Tea & Coffee  4.4 8 3 23.4 0.7 13,651 2,023 2,975-1,318

Cipla
Branded Medicines  15.6 8 0 6.0 0.8 1,20,476 1,474 1,702-1,335

DMCC Speciality
Speciality Chemicals - Div  4.0 8 3 5.9 0.6 626 250 453-246

Eveready Industries
Storage Batteries  4.6 9 1 5.4 0.6 2,362 329 505-272

Heritage Foods
Dairy Products  9.2 8 1 7.8 0.8 3,811 410 727-352

Hindustan Composites
Auto Ancillaries  5.5 8 0 5.8 0.9 661 452 670-382

Indian Metals & Ferro

Diversified Mining  6.1 9 1 15.5 1.0 3,552 657 999-550

Insecticides (India)
Pesticides  4.4 9 3 7.6 1.1 2,213 761 1,084-476

Kamdhenu
Iron & Steel  15.8 8 1 10.3 0.6 851 30 67-25

Kiran Vyapar
Investment Holding  6.0 9 3 11.7 1.1 630 232 307-157

MOIL
Other Minerals  12.6 8 2 5.9 1.0 7,439 373 588-274

Pearl Global Industries

Readymade Garment  5.6 8 1 6.1 1.5 5,417 1,195 1,717-549

Pix Transmissions
Industrial Services - Div  23.7 8 1 6.8 1.2 2,376 1,754 2,800-1,185

Premier Polyfilm
Home Furnishing & Decor  11.7 8 3 6.1 1.2 580 55 85-36

Quess Corp
Business Services - Div  4.4 8 0 9.7 0.5 5,565 341 875-272

Rupa & Company

Integrated Textiles  4.5 9 1 12.6 1.0 1,682 209 362-174

Seamec
Marine Logistics  7.9 8 3 5.6 0.8 2,123 858 1,670-781

Stock Rating and price data as of May 20, 2025. For the full list, scan the QR code on the right.

64 Wealth Insight June 2025

Subscription copy of [[email protected]]. Redistribution prohibited.
Want more? Here you go
Other screens available on the Value Research website, along with
their themes and some of their stocks
P/E P/E

High momentum GIC 10.1 Marico 57.2

Ashok Leyland 25.2 Persistent Systems 63.4
large caps
Coromandel 34.7 SRF 71.0
Gives a list of large caps that are in Lloyds Metals 48.0 Bharat Dynamics 115.1
vogue right now
Bharti Hexacom 56.5 Hitachi Energy 186.6

High momentum Nava 12.0 Transformers & Rectifiers 73.4

LT Foods 21.8 DOMS Industries 79.2
mid caps
Force Motors 17.5 Sarda Energy 24.4
Gives a list of mid caps that are in Blue Jet Healthcare 46.3 Zen Technologies 60.9
the vogue right now
Maharashtra Scooters 73.1 E.I.D. - Parry 21.6

High momentum Iris Business Services 42.5 Kwality Pharma 25.2

Premier Polyfilm 21.9 Benares Hotels 29.7
small caps
Shukra Pharma 78.5 ICE Make Refrigeration 57.9
Gives a list of small caps that are in Amal 22.2 Jagsonpal Pharma 25.5
the vogue right now
Frontier Springs 35.3 Bajaj Steel Industries 15.9

Dividend yield (%) Dividend yield (%)

High dividend yield Bank Of Baroda 3.5 Indraprastha Gas 3.3

Bank Of India 3.5 ONGC 4.9
High dividend paying stocks
Canara Bank 3.7 Shipping Corporation 3.6
yielding well
Great Eastern Shipping 3.2 Union Bank 3.4

P/B P/B

Book value discount VLS Finance 0.3 Jindal Photo 0.4

Zuari Industries 0.2 Jindal Poly Investment 0.4
Stocks that are trading at a discount
Zuari Agro Chemicals 0.5 The Yamuna Syndicate 1.0
to their respective book values
The Sandesh 0.7 Capital SFB 1.0
IST 0.7 Suryoday SFB 0.7

For all the screens and to customise them

as per your requirements, visit
z
Stock Rating



z
Value Guru screens



z
Easy peer comparison

www.valueresearchonline.com/stocks-screener/

Subscription copy of [[email protected]]. Redistribution prohibited.

 WORDS WORTH NOW

Sumant Sinha, CEO, ReNew Power

On the cost disparity between Indian and Chinese solar modules
Indian manufacturers are efficient in terms of conversion of inputs to
outputs. However, costs of inputs like land, electricity, logistics and even
finance are much lower in China due to systemic reasons. An ecosystem of
ancillary suppliers also helps them procure inputs in a cost-effective way.
Chinese manufacturers have a longer operational history and operate at
much larger scale.
Outlook Business, April 2025

Tuhin Kanta Pandey, Chairman, SEBI Warren Buffett, Chairperson, Berkshire Hathaway
On whether T+0 days favours On emotional discipline required during
only traders market downturns
Reducing settlement time There have been three times since we acquired
Berkshire that Berkshire has gone down
minimises risk; [it does] not
50 per cent in a fairly short period. Nothing was
promote trading. It’s not about fundamentally wrong with the company at any
traders versus investors. Taxation, time...If it makes a difference to you whether your
like STT, already discourages stocks are down 15 per cent or not, you need to get
a somewhat different investment philosophy
frequent trading by imposing costs
because the world is not going to adapt to you.
each time, unlike long-term capital Berkshire Hathaway AGM, May 3, 2025
gains tax, which incentivises
holding investments for over a
year. Trading, however, is vital for Pieter Elbers, CEO, InterGlobe Aviation
market liquidity—if everyone only On scaling up to face global
invested long-term without trading, airline competition
exits would be challenging. The opportunity to connect in India is massive.
Fortune India, May 2025 And there’s quite a few flows from Africa to
Southeast Asia; the quickest way is via India. If
Sout
we want
w to compete with the big aviation giants
in China,
C Europe, the US, we should have a
certain size and scale. What’s
cert
happening in India
happ dia is very
much in line with
muc h what
happened in other
happ er parts
the world. It will
of th ill
create airlines that
crea at are
able in size and skill to
face that competition.
ition.
Business Today, May 11, 2025
Busin

66 We
66 Wealth
Weal
alth
al t IInsight
nssight
ig
ght
h A
April
prililil 2025
pr 200225
Subscription copy of [[email protected]]. Redistribution prohibited.
 (https://scores.sebi.gov.in)

Subscription copy of [[email protected]]. Redistribution prohibited.


0OFUJNF
,:$
,OPX
:PVS
$VTUPNFS 
0OFUJNF
,:$
SFHJTUSBUJPO
JT
NBOEBUPSZ
UP
JOWFTU
JO
NVUVBM
GVOET
:PV
DBO
DPNQMFUF
UIF

TBNF
CZ
TVCNJUUJOH
UIF
SFRVJTJUF
EPDVNFOUT
BU
BOZ
PG
PVS
CSBODIFT
PS
DPMMFDUJPO
DFOUSFT
:PV
NBZ
BMTP
BWBJM
PVS
0OMJOF
,:$
3FHJTUSBUJPO

GBDJMJUZ
XIJMF
PQFOJOH
BO
POMJOF
BDDPVOU
XJUI
VT
'PS
NPSF
EFUBJMT
QMFBTF
WJTJU
PVS
XFCTJUF
XXXGSBOLMJOUFNQMFUPOJOEJBDPN

*OWFTUPST
NVTU
EFBM
JOWFTU

POMZ
XJUI
4&#*
SFHJTUFSFE
.VUVBM
'VOET
%FUBJMT
BWBJMBCMF
PO
UIF
4&#*
XFCTJUF
XXXTFCJHPWJO
*OWFTUPST
DBO
SFBDI
VT
PO
PVS
UPMMGSFF
IFMQMJOF




03
XSJUF
UP
VT
BU
HSJFWBODFSFESFTTBM!GSBOLMJOUFNQMFUPODPN
'PS
FTDBMBUJPO
XSJUF
UP
VT
BU
IFBEPGDVTUPNFSTFSWJDF!GSBOLMJOUFNQMFUPODPN

QSFTJEFOU!GSBOLMJOUFNQMFUPODPN
PS
MPEHF
ZPVS
HSJFWBODF
XJUI
4&#*
UISPVHI
UIFJS
4$03&4
4&#*
$PNQMBJOU
3FESFTT
4ZTUFN
1PSUBM
BU

IUUQTTDPSFTTFCJHPWJO
PS
ZPV
NBZ
åMF
BOZ
DPNQMBJOU
PO
UIF
4NBSU
0%3
PO
IUUQTTNBSUPESJOMPHJO

Subscription copy of [[email protected]]. Redistribution prohibited.