Time to switch from FMCG to IT.. My bet is on #INFY
Around year back we discussed that “IT is new FMCG” and market actually recognized this and lot of IT companies trading at 50-60x. I feel one needs to be selective in IT. Not every ER&D is #TataElxsi.
Around year back we discussed that “IT is new FMCG” and market actually recognized this and lot of IT companies trading at 50-60x. I feel one needs to be selective in IT. Not every ER&D is #TataElxsi.
#TataElxsi has its own quality. That’s where I called it CRADS (Contract Research and Development Services).
Cloud, Digital, Blockchain, AR/VR, Robotics, 3D Printing, IoT, AI, ML, Meta…complete transformation of how businesses work and consumers react. Mammoth opportunity
Cloud, Digital, Blockchain, AR/VR, Robotics, 3D Printing, IoT, AI, ML, Meta…complete transformation of how businesses work and consumers react. Mammoth opportunity
waiting in IT. It’s time to switch FMCG into IT. With flourishing e-com and online marketplace, value of distribution franchise is waning for FMCG. New brands are able to create market share with digital marketing and sales channel. Higher Ad spends, product development cost and
competitive pressure from brand curators will keep FMCG margins under pressure. Brand curator is the new theme. Nykaa is perfect example of this, 10 yr old company with 1000 crs sales and 1 L cr mcap!!!
Client stickiness, earnings growth and margin predictability is higher in
Client stickiness, earnings growth and margin predictability is higher in
IT players than FMCG players now. FMCG with 8-10% growth doesn’t deserve 70-90x multiples
Market is paying crazy multiple to FMCG on the back of safety and longevity but IT scores better on these parameters at this point. Since last more than 45 qtrs, Infy is showing yoy
Market is paying crazy multiple to FMCG on the back of safety and longevity but IT scores better on these parameters at this point. Since last more than 45 qtrs, Infy is showing yoy
growth consistently. FY21, sales growth was 11%, FY22, guiding for 18-20%, expect to grow by similar no in FY23. Microsoft has delivered 20% growth yoy (on such a large base) in last qtr supported by all new age technologies and platform. Infy’s sales tripled in last 10 yrs
whereas HUL sales doubled in the same period.
Biotech and IT are two mega trends in the world. Future will be faster than one thinks. It will be non-linear and exponential. Every business needs to reinvent and reorganize to survive and IT will assist the change. Multiple
Biotech and IT are two mega trends in the world. Future will be faster than one thinks. It will be non-linear and exponential. Every business needs to reinvent and reorganize to survive and IT will assist the change. Multiple
industries and sectors will face disruptions, be it BFSI, manufacturing, retail, healthcare or logistics. IT will help this adaptation.
Look for companies with huge talent pool, great corporate governance, solid processes and vast customer reach. Infy ticks all the check boxes
Look for companies with huge talent pool, great corporate governance, solid processes and vast customer reach. Infy ticks all the check boxes
along with undemanding valuations (25x FY23).
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