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Thread on sector dynamics and selection...only for educational purpose...personal views...
Some interesting sectors currently:
1. Specialty Chemicals
2. Pharma
3. Agri
4. IT
5. Platforms
(1/n)
Some interesting sectors currently:
1. Specialty Chemicals
2. Pharma
3. Agri
4. IT
5. Platforms
(1/n)
Selecting sectors with tailwind at early stage is an ART and has huge payoff if you can do it...
Generally price-volume action gives you first signs of change in dynamics...
This should be trigger for further FUNDAMENTAL research to understand KEY KPIs in the industry
(2/n)
Generally price-volume action gives you first signs of change in dynamics...
This should be trigger for further FUNDAMENTAL research to understand KEY KPIs in the industry
(2/n)
Now coming to these why sectors - trying to understand WHY is the key..
1. Specialty Chemicals
>> India has competitive advantage
>> Niche chemistry
>> Monopoly/Duopoly/Oligopoly structures
>> High Entry Barriers
>> Value Migration
Video: https://bit.ly/3iTLV4z
(3/n)
1. Specialty Chemicals
>> India has competitive advantage
>> Niche chemistry
>> Monopoly/Duopoly/Oligopoly structures
>> High Entry Barriers
>> Value Migration
Video: https://bit.ly/3iTLV4z
(3/n)
2. Pharma
>> Value Migration
>> Govt. Focus and policy changes
>> Industry competitive advantages
>> Niche players
>> Approval acceleration
More on API and Pharma:
(4/n)
>> Value Migration
>> Govt. Focus and policy changes
>> Industry competitive advantages
>> Niche players
>> Approval acceleration
More on API and Pharma:
(4/n)
3. Agri
>> Formalization
>> Effect due to lockdown
>> Rules changing
>> Contract Farming opportunities
>> Good Monsoon
(5/n)
>> Formalization
>> Effect due to lockdown
>> Rules changing
>> Contract Farming opportunities
>> Good Monsoon
(5/n)
4. IT (particularly Midcap IT)
>> Huge cost saving through WFH
>> More RFPs floating
>> Mid-size global companies realizing need to go digital
>> Long term partial WFM trends
>> Mostly debt free balance sheets
>> Scalability
(6/n)
>> Huge cost saving through WFH
>> More RFPs floating
>> Mid-size global companies realizing need to go digital
>> Long term partial WFM trends
>> Mostly debt free balance sheets
>> Scalability
(6/n)
5. Platform businesses
>> Unorganized players feeling pinch
>> Migration for non-digital companies is essential
>> Scalability & growth potential
>> Other industries suffering - value migration
>> Mostly digital, low impact from lockdown, Anti-fragility in these conditions
(7/n)
>> Unorganized players feeling pinch
>> Migration for non-digital companies is essential
>> Scalability & growth potential
>> Other industries suffering - value migration
>> Mostly digital, low impact from lockdown, Anti-fragility in these conditions
(7/n)
Again it is very important to understand whether the changes are structural or temporary...
This helps in position sizing, portfolio allocation and exit decisions..
Framework to do such analysis:
(8/n)
This helps in position sizing, portfolio allocation and exit decisions..
Framework to do such analysis:
(8/n)
Here is how I did some price-volume analysis on few sectors through my customized screen..
Helps grab them early and make decent multi-baggers...
(9/n) https://vivekmashrani.com/screening-strategies-using-price-volume-action/
Helps grab them early and make decent multi-baggers...
(9/n) https://vivekmashrani.com/screening-strategies-using-price-volume-action/
Again, it's very important to ride these sectors as a basket rather than concentrated company allocation in my view...
And averaging up as they move up..
Hope this thread was helpful...to learn more you can join my upcoming masterclass >> http://technofunda.co/webinar
(10/10)
And averaging up as they move up..
Hope this thread was helpful...to learn more you can join my upcoming masterclass >> http://technofunda.co/webinar
(10/10)
