Series 78 – Q1 Portfolio Review Highlights

Continuing from our last episode, today we highlight additional themes of interest in portfolio construction. Last week, we covered three themes: Rural Recovery – Two Wheelers, Natural Gas Imports, and Textile Destocking. You can find the complete portfolio review in the link below, available on our website.

Portfolio Review – 1Q FY25 – ITUS Capital

More themes in interest are –

Health care (Pharma) – From FY10-16, Indian pharma companies saw ~15% CAGR in US generics due to patent expiries and lenient USFDA norms. However, in the last 8 years, GPO consolidation in the US led to price-driven buying, causing many US plants to shut down. Today, pharma companies focus on cash flow accumulation and margin-accretive inorganic acquisitions and our investments are towards these companies.

Consumer Durables – Consumer durables have shown strong growth due to rural recovery, CAPEX thrust, heatwave, and premiumisation. Loans for electronics, furniture, digital products, e-commerce, and retail increased by 31% in urban and 36% in rural areas in FY24. And we are invested in a leader in consumer durables lending. Also growth in room air conditioner market saw 50-60% in Q1FY25 and we are invested in company that has consistent growth and market share gains and a 20%+ ROIC growth in the last 8 years.

IT staffing growth – trends have turned positive by Q1FY25, with Naukri’s Job Speak index showing a 12% YoY and 11% MoM increase. This indicates a strong demand environment and higher employee utilization. Consequently, our exposure has been to company with growth anticipation and expanding margins.

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