Professional Documents
Culture Documents
Ambit the best of our big picture If you believe there is value in a
broker like Ambit, if you like our
research approach, our product, our analysts
and sales people vote for us on Asia
Last week was about all our mistakes over the past 12 months Money.
(click here). This week is about all the research that we are proud of. In Step 1 - Go to Asia Money Website and
a world of dwindling attention spans, we highlight our most thought click on 'VOTE NOW'
provoking, thematic research; work that will be relevant to you well Step 2 - When asked to 'select
after the next 12 months. geographies you wish to complete the
survey for, please select INDIA
We want to remain free to take a long-term view and to write ahead-of-
the-curve thematic research do vote for us on Asia Money if you value Step 3 - Once you reach the India page
you will find Ambit Capital on every
that in a broker.
dropdown. Please vote for Ambit Capital
and for your salesperson, individual
Themes that are now trends! analysts and sales traders by name.
Dairy - when value added value: While companies & investors focused
on value added products, we said (click here) that the plain vanilla milk & To showcase better everything that we did
paneer businesses offered better return ratios/growth. And picked Hatsun as over the last 12 months, we aim to send
the stock to back. Compare performance of Hatsun with Parag and Prabhat you an email every week for the next 6
and tell us we werent bang on?! weeks highlighting:
Beer < hard liquor: In alcohol (click here) - we told you to own spirits, Week#1: We start with our biggest
NOT beer. We also said beer wasnt really a premiumization play thanks learnings simply put, a collection of our
biggest mistakes at the strategy and
to Indias taxation, it was already too premium! UNSP has O/P UBBL by >
economy level and in stocks calls (BUYs
25% in the 3 months since our note. Yup. You heard right. and SELLs) and reasons why we ended up
Asset turns is key in Indian retailing: Our singular theme (click missing the glaringly obvious.
here, here, here and here) has been that businesses that provide value Week#2: In a world of declining attention
(NOT to be confused with cheap) will do well and those that dont, wont. We span, we take pride in being rather widely
are buyers on Trent, Page and Aditya Birla Fashion; told you to subscribe to read. This edition will be our most
D Mart, and to stay away from Jubilant and Bata. Worked, didnt it? thought-provoking, thematic research;
notes with a shelf life of several years, a
OMCs this time is structural: Decreasing government interference, free
rarity in this industry.
pricing and improving efficiencies called for a re-rating of these stocks we
argued in note after note (click here and here). The proof is here to see Week#3: We then bring to you our best
BUYs; our BUY calls may be few but
in the stock price performance of BPCL, HPCL and IOCL.
theyve delivered rather spectacularly!
Cement BUY when you see the end of the capex cycle: The theme
Week#4: Our best SELLs but of course!
wed outlined 1.5 years ago (click here) has been so accurate that it begs a
mention! We argued that after a decade of indiscriminate capex, the cement Week#5: The very best of our corporate
access (last year was a coup of sorts as we
sector was about to take a breather to focus on making money. And that we
managed to showcase corporates that no
were entering a phase where price growth > volume growth. That has one else did), our reverse roadshows (that
played out almost exactly as predicted. helped provide clients easy inroads into
New Delhi's impenetrable corridors of
power) and expert access (with the
Of Indian equities returns, bubbles and missed opportunities
helicopter view they bring to the table in
India delivers sustained O/P to the patient investor - click an industry obsessed with the short term).
here and here to read about the peculiar distribution of equity returns in Week#6: And finally, the very best of our
India Ten Interesting Things; handpicked by
the author of this product and our very
For the long-term investor - our ever relevant Coffee Can work (click own Sceptical CEO, Saurabh Mukherjea!
here)
Risks arising from our biases: Our note based on Micheal Lewis The
undoing project (click here) takes the biases and heuristics he talks about
and applies it in the Indian context. We believe much is gained from
reflecting on ones errors.
Research Analysts
The unusual billionaires on some of Indias best run businesses has now
Team Ambit
sold over 20k copies and has become somewhat of a template for HNW allie@ambit.co
investors in India to build their portfolios. Tel: + 91 22 3043 3000
Ambit Capital and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, investors should be aware that Ambit Capital
may have a conflict of interest that could affect the objectivity of this report. Investors should not consider this report as the only factor in making their investment decision.
Company deep dives you can read even 2 years from now!
Hastun Pricing power in packet milk! Click here
Vinati Organics Being green is a business proposition in itself. Click here
RBL Steep transition curve ahead. Click here
Jubilant Foodworks We do not envy the new CEO. Click here
Arvind Mills When a business gets found out. Click here and here
Nilkamal Not all plastic is Supreme! Click here
Equitas/Ujjivan Perfecting the art of lending to the poor. Click here
Pidilite Can construction chemicals be bigger than Fevicol? Click here
D Mart Different from the rest, yet, similar to the big boys of western
retail. Click here
PI Industries Scalability isnt really a worry. Click here
Garware Wall ropes Charging a premium in a commodity business. Click here
Endurance 1st in line, as the two wheeler supply chain opens up. Click here
Page Womens wear can be even bigger than mens. Click here
Motilal Oswal Building a profitable AMC business from scratch. Click here
MGL Firmly on the right side of regulation. Click here
Disclaimer
1. AMBIT Capital Private Limited (AMBIT Capital) and its affiliates are a full service, integrated investment banking, investment advisory and brokerage group. AMBIT Capital is a Stock Broker, Portfolio
Manager, Merchant Banker and Depository Participant registered with Securities and Exchange Board of India Limited (SEBI) and is regulated by SEBI.
2. AMBIT Capital makes best endeavours to ensure that the research analyst(s) use current, reliable, comprehensive information and obtain such information from sources which the analyst(s) believes
to be reliable. However, such information has not been independently verified by AMBIT Capital and/or the analyst(s) and no representation or warranty, express or implied, is made as to the
accuracy or completeness of any information obtained from third parties. The information, opinions, views expressed in this Research Report are those of the research analyst as at the date of this
Research Report which are subject to change and do not represent to be an authority on the subject. AMBIT Capital may or may not subscribe to any and/ or all the views expressed herein.
3. This Research Report should be read and relied upon at the sole discretion and risk of the recipient. If you are dissatisfied with the contents of this complimentary Research Report or with the terms of
this Disclaimer, your sole and exclusive remedy is to stop using this Research Report and AMBIT Capital or its affiliates shall not be responsible and/ or liable for any direct/consequential loss
howsoever directly or indirectly, from any use of this Research Report.
4. If this Research Report is received by any client of AMBIT Capital or its affiliate, the relationship of AMBIT Capital/its affiliate with such client will continue to be governed by the terms and conditions
in place between AMBIT Capital/ such affiliate and the client.
5. This Research Report is issued for information only and the 'Buy', 'Sell', or Other Recommendation made in this Research Report such should not be construed as an investment advice to any
recipient to acquire, subscribe, purchase, sell, dispose of, retain any securities and should not be intended or treated as a substitute for necessary review or validation or any professional advice.
Recipients should consider this Research Report as only a single factor in making any investment decisions. This Research Report is not an offer to sell or the solicitation of an offer to purchase or
subscribe for any investment or as an official endorsement of any investment.
6. This Research Report is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied in
whole or in part, for any purpose. Neither this Research Report nor any copy of it may be taken or transmitted or distributed, directly or indirectly within India or into any other country including
United States (to US Persons), Canada or Japan or to any resident thereof. The distribution of this Research Report in other jurisdictions may be strictly restricted and/ or prohibited by law or contract,
and persons into whose possession this Research Report comes should inform themselves about such restriction and/ or prohibition, and observe any such restrictions and/ or prohibition.
7. Ambit Capital Private Limited is registered as a Research Entity under the SEBI (Research Analysts) Regulations, 2014. SEBI Reg.No.- INH000000313.
Conflict of Interests
8. In the normal course of AMBIT Capitals business circumstances may arise that could result in the interests of AMBIT Capital conflicting with the interests of clients or one clients interests conflicting
with the interest of another client. AMBIT Capital makes best efforts to ensure that conflicts are identified and managed and that clients interests are protected. AMBIT Capital has policies and
procedures in place to control the flow and use of non-public, price sensitive information and employees personal account trading. Where appropriate and reasonably achievable, AMBIT Capital
segregates the activities of staff working in areas where conflicts of interest may arise. However, clients/potential clients of AMBIT Capital should be aware of these possible conflicts of interests and
should make informed decisions in relation to AMBIT Capitals services.
9. AMBIT Capital and/or its affiliates may from time to time have or solicit investment banking, investment advisory and other business relationships with companies covered in this Research Report and
may receive compensation for the same.
Analyst Certification
Each of the analysts identified in this report certifies, with respect to the companies or securities that the individual analyses, that (1) the views expressed in this report reflect his or her personal views
about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly dependent on the specific recommendations or views expressed in this
report.