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Finance The Indian Fast Moving Consumer Goods (FMCG) Industry
Background note for "Patanjali Ayurved: Valuation of an Unusual FMCG Company in India", case ISB178.
Learn MorePublished: Sep 15, 2019₹399.00 -
Finance Patanjali Ayurved: Valuation of an Unusual FMCG Company in India
An investment analyst at a fictional wealth fund (SWF) is concentrating on India's high-growth, high-potential fast moving consumer goods (FMCG) sector and selects a few strong performers in both public and private markets to recommend to the management as an investment. The Indian FMCG sector has been trading at high market multiples compared to other sectors, and thus, he also needs to analyze if these high valuation levels are justified. In valuing Patanjali, a privately-held company that is a very strong performer with an unusually rapid growth trajectory, he needs to factor in both tangible and intangible information, giving special attention to the company's unusual origins and atypical management.
Learning Objective
- To give students a sense of how to go about analyzing a particular sector for investment considerations.
- To give students a perspective on valuing public companies, introducing certain valuation methodologies along with their relevance and emphasizing the importance of company- and sector-specific nuances in valuation.
- To introduce students to the valuation of private companies, emphasizing the importance of intangible company-specific factors in reaching an investment decision.
Published: Sep 15, 2019₹399.00 -
Finance Thomas Cook India: Potential Unleashed - A Journey to Value Creation
The case gives students an opportunity to analyze the ways in which the company's management uses Prem Watsa's value investment philosophy to guide its decisions, both in its core business and in its acquisitions. The case also gives students lessons the value investment philosophy offers to investors and managers of firms. The travel industry is beset by structural changes and new paradigms and owners have to respond to the changing environment.
Learning Objective
The changing fortunes of TCI are most apparent in the increase in its share price after making several acquisitions. The case gives students an opportunity to analyze the ways in which the company's management uses Prem Watsa's value investment philosophy to guide its decisions, both in its core business and in its acquisitions. The case also gives students an idea of how travel companies in India have had to adapt to new paradigms and what lessons the value investment philosophy offers.
Learn MorePublished: Oct 24, 2018₹399.00 -
Finance Azim Premji Trust: The Endowment Model in an Emerging Market
The Azim Premji Trust, among the largest philanthropic trusts in India, had its origins in 2001, when Azim Premji transferred Wipro shares worth US$ 125 million to the trust. As of March 31, 2017, the trust had a corpus fund of US$ 9 billion. The trust's goal was to support Premji's philanthropic pursuits through two organizations -- the Azim Premji Foundation and Azim Premji Philanthropic Initiatives. Both beneficiaries had distinct, ambitious philanthropic objectives that required large, ongoing funding. The trust's Chief Endowment Officer, K. R. Lakshminarayana, had been given the responsibility of planning the future of one of India's first endowments. The endowment was tasked with maximizing total return over a long horizon. Therefore, the trust had deliberately been created as a taxable entity to allow it the freedom to make large investments in equities and alternatives. The case describes the challenges Lakshminarayana, widely known as Lan, faced in arriving at a strategic asset allocation model in an emerging market with limited investment talent and investment firms and constraints on the trust's ability to invest outside India.
Learning Objective
- Identify and describe an exhaustive list of investment philosophies and investment opportunities available to the Azim Premji Trust.
- Identify and describe any changes in the ways through which the Azim Premji Trust invests as institutions and investment opportunities improve in India.
Published: Dec 28, 2017₹399.00
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- Author Geetika Shah Remove This Item