Sinewave Securities

Insurance provides economic protection from identified risks occurring or discovered within a specified period. Insurance is a unique product in that the ultimate cost is often unknown until long after the coverage period, while the revenue—premium payments by policyholders—are received before or during the coverage period.

What is Life insurance? Life insurance is a contract between an insurer and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies in exchange for the premiums paid by the policyholders during their lifetime.

The Healthcare delivery Industry - According to the Global Health Expenditure Database compiled by the World Health Organisation (WHO), India’s current expenditure on healthcare was 3.5% of GDP in 2018. India’s real GDP in fiscal 2019 was Rs 139.8 trillion (constant fiscal 2012 prices). Accordingly, India’ current healthcare expenditure during fiscal 2019 is estimated at approximately Rs 4.9 trillion. India trails not just developed countries such as the United States (the US) and the United Kingdom (the UK), but also developing countries such as Brazil, Nepal, Vietnam, Singapore, Sri Lanka, Malaysia, and Thailand in terms of healthcare spending as a percentage of GDP as of 2018.

The real estate market in India has grown at a CAGR of approximately 10% from USD 50 billion in 2008 to USD 120 billion in 2017, and is expected to further grow at a CAGR of 17.7% to reach USD 1 trillion by 2030. The real estate market contributed approximately 6% to India’s GDP in 2017 and is likely to contribute approximately 13% to India’s GDP by 2025. Residential, commercial and retail are the three key asset classes that have primarily contributed to the growth of the real estate market in India. (Anarock Report)

The healthcare sector consists of all businesses involved in the provision and coordination of medical and related goods and services. With such huge base it packs together a number of companies from API players to generic drug makers to hospitals. Here an overview of the sector is provided using numbers, facts and estimated growth rates. Drug Segment Global-1.3tn$ @ CAGR 4.5% 2025E -Formulation-85% i.e. $1.1tn and rest 15% API and bulk drugs-$200bn -US=$500bn US Pharma Chain Fastest growing therapies : The domestic formulations business of pharmaceutical companies in India are pure cash cow businesses. This bucket has the highest ROCE, lowest working capital requirement & least capital intensive, generating ~11% of Revenue as free cash over the last 10 years. Given that the Indian Pharmaceutical market is a Branded generic market, the brands of companies are essentially their greatest competitive advantage. This is reflected in the fact that the top 25 pharma...

According to Gartner estimates, IT spending in India is estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5 billion in 2022. As of FY21, the IT industry employed 4.5 million people. This push towards cloud services has boosted hyper-scale data center investments, with global investments estimated to exceed ~US$ 200 billion annually by 2025.  Broad story: Dotcom bubble in 2000-Stretched valuations and overhyped earnings. 2002-Packaged Software—IBM and SAP growth—lead to rise of TCS, Infy, Wipro, HCL 2010-Engineering Services—Tata Elxi, LTTS and others 2015 onwards Digitalization = Shifting from legacy services (2%Cagr) to digital services(Growing 21% CAGR) 2018 onwards : SaaS(Software as a Service)—Capex one time becomes OPEX—Retained earnings + Pricing power (as less competition) Value Chain Broad overview of popular companies : Happiest Minds Insights=Software as a Service which is OPEX for customer not CAPEX putting up certainty ...

Specialty chemicals (also called specialties or effect chemicals) are particular chemical products which provide a wide variety of effects on which many other industry sectors rely. Some of the categories of specialty chemicals are adhesives, agrichemicals, cleaning materials, colors, cosmetic additives, construction chemicals, elastomers, flavors, food additives, fragrances, industrial gases, lubricants, paints, polymers, surfactants, and textile auxiliaries. Aarti Industries and DMCC operate in their specific domains and are leading producers of various derivatives at competitive prices. This blog covers the value chain, economics and management analysis of the leading specialty chemical companies.   A leading Specialty Chemicals company in  Benzene based derivatives  with integrated operations and high level of cost optimization. Pharma operations spanning  APIs, intermediates and Xanthene derivatives Established by first generation technocrats in 1984 S...