Musings on the Mahatma, Markets & Moguldom by Ramesh S. Damani

Ramesh S. Damani Nov 7, 2011

News Item: Mahatma Gandhi’s items on auction. “The personal items to be auctioned are Gandhis metal‐rimmed glasses, pocket watch, a pair of sandals and a plate and bowl. The collection has a reserve price and a plate and bowl The collection has a reserve price of between 20,000 dollars and 30,000 dollars.”

CNN IBN NEWS FLASH: CNN‐IBN NEWS FLASH:Vijay Mallya buys Gandhis items for $1.8 million.f $1 8 illi

Value Investing FAQ: Value Investing FAQ:Q1) Why is September 19, 2007 considered an Q1) Why is September 19 2007 considered an important day in cricket history ?Q2) What does it have in common with Value investing? i i ?

India s Yuvraj smashes six sixes!Indias Yuvraj smashes six sixes! Yuvraj Singh became the first became the first player in Twenty20 history to hit six sixes in an over in Indias match I di t h against England in a world cup match in Durban, SA. The devastating barrage from Yuvraj, 25, helped him 25 helped him reach his half‐ century off just 12 balls ‐ the fastest 50 ever in international cricket.

The Indian Bull Markets Intellectual Hypothesis: h• The bird of gold: The bird of gold : • The rise of Indias consumer market As India transitions to become the worlds fifth largest g consumer market by 2025, its middle class will swell by over ten times its current size of 50 million to 583 million people. – Mckinsey Survey 2007

Jewels in the crown Fantasy Five:Name Mcap Jan 2003 Mcap Jan 2008 X times SectorPantaloon 90 7450 80 RetailUnited Spirits 225 16000 70 BeveragesAxis BankAxis Bank 800 32577 40 40* BankingBharti 4188 145549 35* TelecomTitan 300 4617 14* JewelryTotals 5603 206193 40 (Mcap is Rs crs)

The Important Questions? The Important Questions?• A $150 million investment becomes $6 billion A $150 million investment becomes $6 billion in 5 years! • You would have leadership positions in a You would have leadership positions in a variety of industries !• A Are such opportunities still there ? h ii ill h ?• What about global factors?• Where are the opportunities ?

Electronic Media Industry Case Study:Electronic Media Industry Case Study:• Pathetic Market capitalization Pathetic Market capitalization• Sector plagued by losses and unbridled competition competition• Distribution concentrated in unorganized sector• Content owners, other than cricket, bollywood and high premium properties getting stiffed. g g• Believe “Content will be King.” Again.

What is the Game Changer for the Electronic Media Sector? l d• Cab e g t at o Cable Digitization Bill is passed. (Finally!!!) s passed. ( a y!!!)• India to go from Analog to Digital over 3 years.• Carriage costs to go down for Broadcasters. Carriage costs to go down for Broadcasters.• Subscription revenue to improve; pay models to be introduced.• Media consumption to move from news papers to online and electronic.• Ad spend to GDP ratio will improve as consumption boom keeps rolling.

Select Snapshot of Electronic Media: Select Snapshot of Electronic Media:Name Cur Market Cap in Rs Genre crsTV Today 360 NewsNDTV 300 NewsSun TV 11300 GECZee TV 12106 GECTV 18 Broadcast 1587 GEC, BusinessDen 991 Cable MSOHathaway 1730 Cable MSO

Finally:“ If a man looks sharply and attentively, he shall see fortune for though she is blind fortune, she is not invisible.” ---Francis Bacon F i B

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Musings on the Mahatma, Markets & Moguldom by Ramesh S. Damani

by VALUExIndia on Jan 10, 2012

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Musings on the Mahatma, Markets & Moguldom by Ramesh S. Damani — Presentation Transcript