Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
by Naveen
January 13, 2025
Investing in growth in the public markets
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Last week, we discussed our decision to reduce our position in the auto sector. This week, as a continuation to key highlights from our Quarterly portfolio review, we want to highlight the reason why we plan rural recovery growth story and our pockets of investment in this theme.
Corporate India is experiencing a slowdown in consumer demand, more pronounced in urban areas due to factors like food inflation, slow wage growth, and reduced bank credit for personal loans. Food inflation spiked to 9.24% in September, and the government has countered this with buffer stocks and subsidized sales. Urban wage growth has slowed significantly, and RBI measures have regulated consumer loans, slowing personal loan growth. Conversely, rural demand is stronger due to a 5.7% increase in kharif food grain production, strong monsoons, and higher MSP for kharif crops. This has boosted rural incomes, leading to higher sales in the FMCG sector and automobile (2W). The below chart shows how rural growth has outpaced urban growth in Auto and FMCG.
ITUS is focusing on 2W and FMCG companies with diverse product ranges to capitalize on this rural recovery, expecting improved revenue growth and stable margins.
Other key highlights are also available in our portfolio review report. This is a snapshot from our portfolio review report published in our website, to read the complete report please click on the below link –
https://ituscapital.com/articles/portfolio-review-2q-fy25/
Stay tuned for more detailed insights over the next few weeks, into our portfolio’s earnings and the themes driving our investment decisions.
We also keep writing to you about our SIP program that presents investors with a convenient avenue to regularly infuse capital into the client’s portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].
These weekly episodes are now available in our website for your quick read and you may access the same in the below link.
Weekly Enlightenment Archives – ITUS Capital