Sinewave Securities

Sula Wineyards – India’s largest wine producer and seller, Sula has been a consistent market leader in the Indian wine industry in terms of sales volume and value (on the basis of the total revenue from operations) since Fiscal 2009. It has 56 labels to choose from portfolio of 13 distinct Own Brands and 20 international labels (18 wine labels and two spirit labels) that they import and distribute. Brands- “Sula”, “RASA”, “Dindori”, “The Source”, “Satori”, “Mosaic”, “Madera”, “Samara”, “York” and “Dia”, with “Sula” being   flagship brand. Sula is the market leader in terms of range of labels across price segments with more than 50 wine labels. 50% market share by value in the domestic 100% grapes wine market in Fiscal 2012. Market leader across all four price segments, being ‘Elite’ (INR 950+), ‘Premium’ (INR 700-950), ‘Economy’ (INR 400- 700) and ‘Popular’ (<INR 400). Combined sales revenue in the ‘Elite’ and ‘Premium’ segments contributed 70.57%, 68.58% and 67.81% of   ...

Key Terms in Lending Sector Cost of Funds and Net Interest Margin  – As banking works on lending the capital, earn the difference principle, lesser the cost of funds, more will be the difference. Thus difference post expenses is known as Net Interest Margin i.e. the amount of money that a bank is earning in interest on loans compared to the amount it is paying in interest on deposits.

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)

Pharma sector is a mammoth among the healthcare spectrum with the presence of a number of players from generic to non generic, formulations to APIs, CDMO to CRO, biologics and biosimilars. Each sector has a few players competing among themselves to get a chunk in growing markets. I have tried to cover the basics about healthcare sector in   https://www.sinewavesecurities.com/2022/06/healthcare-mamoth-among-moles.html Do give it a read for the basics.   Here I have taken examples of few companies, study their financials and business model and try to enhance “circle of competence”. DRL -25/25/25 ! Dr. Reddy's Laboratories Ltd is a leading India-based pharamceutical company which offers a portfolio of products and services, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical services (CPS), generics, biosimilars and differentiated formulations. Global Generics Segment (~80% of revenues): This is the main business of the company wherein it off...

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 ...