1/ Network Orchestration, A moat

The business model of PDS 👕👖

They play the role of the Orchestrator: A platform that connects to & finds synergies among 1000s of local networks across the world to create collective value for the network & its stakeholders

H/T @Chins1729 👑

2/ It's hard for a traditional firm to move towards being a Network Orchestrator

X | From thinking about their firm → The whole Network
Y | From Management control → Empowerment
Z | Shift in Value Creation through Specialisation → Integration

High Entry Barrier 🚧

There's this perception that IDFC First Bank has only one leader, Mr. V Vaidyanathan

Let me put rest to this mistaken opinion.

A thread 🧵👇 1/ Madhivanan Balakrishnan, COO

MSMEs need to be connected to digital entrepreneurs

Using E-marketplace, GEMS, & GST, bankers are augmenting the underwriting with these

70-75% of the retail lending 100% digital: 4-4.5 lk loans/month (digitally)

OCEN 🚀

IRFC: Business Analysis 🚂

A Regulated Monopoly Lender with zero NPAs & growing faster than HDFC & ICICI Banks

I authored this on Dec 2021 when the stock was barely talked about, posting it today to improve my engagement numbers on Twitter ✨

A Thread 🧵👇 1/ History.

IRFC was established in 1986 as a dedicated market borrowing arm of the Indian Railways, registered with the RBI as an NBFC (Systematically Important)

But why do Railways need them, can't they directly ask for funds from the Ministry of Railways (MoR)?

Real estate stocks have taken a tiny hit due to the interest rate hikes

Zoom Out. This is just a minor blip in this cycle

If the cycle goes the way it has in the past, most of the companies can become 5-10x larger in the next 5 years

If it doesn't, you still double your money. 1/ From Godrej Properties Q2FY23 concall

Price acceleration (across all markets) is driven by the end consumer & not just investors. Interesting.

Strong execution from Sunteck Realty: Targeting a 1800crs TTM Pre-sales by FY23 end.

- $ 3.8 billion (30K crores+) is Est. Gross Development Value (GDV) of the upcoming project pipeline in the next 7-8 years
- 37 million sq ft Across 7 projects

Very Interesting! 1/ They have nearly 2000 crores unsold inventory as of the date

They are also planning to launch 6000 crores worth of projects in the next 18 months

If the demand scenario stays robust, the targets above should not be hard to meet

Target: Double Pre-sales every 2-2.5 years 🚀

Sridhar Vembu Interview 👑

1. R&D Spends >>> Marketing Spends (The opposite is unsustainable, the last year was a bubble)
2. They have always followed an organic process of building deep capabilities over time which allows them to build great products
3. They are investing in medical technology, EVs, Robotics, Network Equipments, AI & ML
4. Future of SaaS? The market is great, however, too many people are chasing it (We need a period of consolidation as no business wants to work with 10s of thousands of companies, only 5-10)

Glenmark Life Sciences is now a too-cheap-to-ignore story 🚀

7x TTM EV/EBITDA, Next year (FY24) -> it will be much lower!

The Narratives of
1. Glenmark's dependence on its parent company
2. The parent's past capital misallocation

will perish with the higher prices 🖋️ 1/ My notes from their IPO.

Looked interesting then, now with a 50% price correction; the risk reward is a lot better ✨

https://twitter.com/anisha_moonka/status/1419629965788663814

IDFC First Bank hits it out of the park: 1% ROA this quarter 🚀

The NPA goes lower, PCR goes up 🏦 1/ The retail engine has started to fire 🔥🥲, the ROA would have been much better if the Treasury losses weren't there.

One of my most-awaited letters to shareholders, Mr. Uday Kotak in FY22 AR is here.

The words of Asia's richest banker 🧵 1/ The word that has resonated the most with me, especially post-COVID is humility. Whether it is political leaders, central bankers, business leaders, or the householder, change is on us and at us

Aegis Logistics: Business Analysis

Supply Side Dominance is the vision: Will they continue to gain market share?

A Thread 🧵👇 1/ Before we go deeper, let us understand the LPG Industry better

a. Upstream: Exploration and Production activities
b. Midstream: Storage and transportation of crude oil and gas
c. Downstream: Refining, production of petroleum products and processing, storage, marketing.

Let's hear what Mr Sashidhar Jagdishan has to say in HDFC Bank's FY22 AR.

I personally am very excited about the future of the HDFC group, which is analogous to a bet on the future of India 🇮🇳🚀

A Thread 🧵 1/ With the period of uncertainty mostly behind us, I believe a more positive macroeconomic outlook dominates the executive agenda, across industries.

Reserve Bank of India FY22 Annual Report Notes.

A Thread 🧵👇 (RT if beneficial) 1/ Interesting Macro talk.

The near-term outlook is fluid, rapidly evolving, and extremely uncertain.

It will likely have a bearing on longer-term prospects, including exacerbating the scars of the pandemic, by deglobalization, financial fragmentation, etc.

"During the year, enterprises moved from thinking of technology-led innovation as a way of coping with pandemic challenges, to looking at it as a means of powering their growth and transformation, especially in the case of clients who had already moved to the cloud." ~TCS FY22 AR 1/ "We are very proud of the steadily expanding number of G&T deals in our order book because each such win represents market share gain for TCS from legacy consulting organizations that have traditionally dominated this space."

Sandhar Technologies: Business Analysis.

The Mutual Fund of Auto Ancillaries? Let's find out.

A Thread 🧵👇 (RT if beneficial) 1/ Automotive is a cyclical industry, due to a 4W/2W being a high-cost ticket item vs an average consumer’s salary (think booms & busts 👇)

What makes me interested currently? It’s the tough times (FY18-present), one of the longest downcycle in its post-liberalization history.

Insights from Thyrocare's 1st concall after the buyout

a. Rahul Guha joins in as MD & CEO; he is the head of Healthcare & senior partner at Boston Consulting group.
b. They tried to increase sample prices, saw a lot of churn in channel partners & had to decrease them again 🤔 1/ c. 100% of PharmEasy volumes and API Group company now come to Thyrocare: 8% of non-covid rev already.
d. API group has access to 2.8 lakh pharmacies in India; for which they are developing software to directly allow the pharmacist to book diagnostic tests with them.

Voltamp Transformers: Business Analysis

A Thread 🧵👇 (RT if beneficial) 1/ Okay, they don't make those transformers but something which is much more important than them (until we have to fight space aliens I guess)

They make Transformers, the backbone of a functioning electricity supply chain.

The company that seems most intriguing to me in this tech downcycle is Coinbase $COIN

Crypto-assets even though volatile, have the potential to bring the next leg of radical changes into our economy.

No point in writing it off due to change in leaders (the recent $UST saga) 1/ A pristine balance sheet is what brings trust when euphoria doesn't.

$COIN has $7 billion on the balance sheet of cash and
crypto.

Interestingly, 54% of the active users are using their crypto for things other than trading as of now. Think you can name any?

Notes of Amazon's 2021 letter to shareholders (by Andy Jassy this time, still the day one) 🧵👇 1/ "We spent Amazon’s first 25 years building a very large fulfillment network, and then had to double it in the last 24 months to meet customer demand."

covid induced boost: required capital investments of $100+ billion to build this to date.

Krsnaa Diagnostics: Business Analysis.

The D-Mart of Diagnostics? Let's find out.

A Thread 🧵👇 1/ It all started when the founder Mr. Rajendra Mutha in his earlier avatar as a pharmacist, saw a lady selling all her goods & land to save her son’s life & still was not able to bear the huge expenses of diagnostics.

It broke him down given his rather modest backgrounds.

Q4FY22 results- BFSI sector companies Thread. 1/ HDFC Bank: Strong

The 20%+ profit growth is back & asset quality is as robust as ever.

Book Thread: Breath by James Nestor.

My learnings & Musings. 1/ “There are as many ways to breathe as there are foods to eat, And each way we breathe will affect our bodies in different ways.”