TOP 7

CONSISTENT
COMPOUNDERS

School of Intrinsic Compounding

School of Intrinsic Compounding
DISCLAIMER:
The content of this presentation is only for the purpose of
education and not to be construed as an investment advice.
Please consult your financial advisor before acting on it.
Registration Status: We are not SEBI Registered Advisors

We are not SEBI registered investment advisors. This video is only

meant for education purpose and nothing constitutes an investment
advice. We are only into providing education services. We own some of
the stocks mentioned in the presentation.

School of Intrinsic Compounding

 HOW GROWTH BECAME VALUE BUT VALUE DIDN'T
TRAILING TRAILING SHARE PRICE
LTM EPS LTM EPS P/E P/E 2 JAN 2015 PERFORMANCE
COMPANY % CHANGE
JAN 2015 AUGUST 2020 2 JAN 2015 PRICE/AUG 2020 LTM EPS FROM 1/1/15 TO 31/8/2020

$ 7.60 $ 1.68 -78% 12 55 -36%

$ 1.50 -58 c -139% 16 -42 -65%

42 p -1.6 p -104% 15 -385 -26%

31 p 1.2 p -96% 15 380 -68%

42 p -2.7 p -106% 5 -81 -31%

53 c $ 7.58 + 1,330% 136 10 723%

-52 c $ 26.01 n/a -593 12 1195%

$ 1.10 $ 8.19 + 645% 71 10 337%

9c $ 5.93 + 6489% 554 8 1164%

46 c $ 2.18 + 374% 88 19 581%

School of Intrinsic Compounding

 SALES GROWTH
(In Rs.Crores)
15,000
14,062
13,692

12,690

11,550

10,129 10,135
10,000
9,379 9,490
8,581
8,430
7,673

6,376

5,222
5,000
4,471

3,647
2,944
2,643
2,047 2,279 2,372
1,921
1,677
1,204 1,425 1,599 1,543
996
711

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

School of Intrinsic Compounding

15,000
14,062
13,692

12,690

11,550

10,129 10,135
10,000
9,379 9,490
8,581
8,430
7,673

6,376

5,222
5,000
4,471

3,647
2,944
2,643
2,047 2,279 2,372
1,921
1,425 1,599 1,543 1,677
996 1,204
711

0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM
 EPS GROWTH
(In Rs.Crores)
250

215.97
166.66
200

127.07

150

115.86 103.85
115.86
110.76
58.42
99.73
100
84.91

67.94
55.39 122.87
50 42.92
32.11 32.68
27.29 26.13
17.96 20.90
6.30 8.27 7.71 8.94 10.21 12.30
5.63
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

School of Intrinsic Compounding

 SALES GROWTH
2,500
2,353

2,012
2,000
1,826

1,500 1,423
1,201
1,107
1,000
860
700
550
500 417
267 322

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 TTM

School of Intrinsic Compounding

 SALES GROWTH (STANDALONE)

25,000

21,376

20,000
19,739
18,584
16,408
15,997
15,000
14,774
13,483
12,042
10,405
10,000
9,064

7,201
5,753
5,003
5,000 4,062
2,811 3,360
2,053 2,367
1,305 1,468 1,616 1,830
839 904 985 1,098
552 674
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 EPS GROWTH
125

116.13

103.08
100

87.12 87.91

75

50
42.66 41.48
32.73
29.30 28.20
25 21.74 22.12 20.22 21.26 22.48
16.54 18.15 18.19
15.11 12.21 14.54

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 REVENUE CAGR
20% 20% 20%
20% 19%
18%
17%

15%

11%
10%

5%

0%
1952-1962 1962-1972 1972-1982 1982-1992 1992-2002 2002-2012 2012-2021

School of Intrinsic Compounding

 SALES GROWTH (STANDALONE)

7,500

6,290 6,186
6,047

5,445
5,270
5,034
5,000
4,658

4,103

3,528

2,957
2,488
2,500
2,024
1,907
1,702
1,290
1,044
755 889
570 662
395 462 518
292 324 360

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 EPS GROWTH
40
37.70

30.50
30 28.91

25.47
24.33
23.50
22.29 21.68 21.28
20.65
20 19 18.81 19.28

14.56 15.09
13.53

9.14 9.79
10 8.99
7.43
6.59
5.78 5.71 6
4.74
3.51

0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 SALES VOLUMES
MOTORCYCLES

10,00,000

8,20,492 8,23,428
7,50,000 6,98,216
6,66,135
6,12,250

5,00,000

2,50,000

0
2017 2018 2019 2020 2021

School of Intrinsic Compounding

 SALES GROWTH
3,000 2,946
2,852 2,833
2,551

2,129
2,000
1,796
1,543

1,188

1,000 876
697
492
339

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 EBITDA MARGINS EBITDA MARGINS
20%
50% 20%
41% 16% 16%
40% 36% 38% 15%
33% 34% 15% 14%
30%
10%
20%
5%
10%

0% 0%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

EBITDA MARGINS EBITDA MARGINS

40% 30%
26%
30%
30% 21% 20%
20% 17% 17%
21% 20% 20%
20% 16%
10%
10%

0% 0%
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 NESTLE MARKET SHARE IN OTHER CATEGORIES

INSTANT NOODLES KETCHUP INSTANT PASTA

MARKET SHARE: 60% MARKET SHARE: 20% MARKET SHARE: 76%

WHITE & WAFERS INSTANT COFFEE CONDENSED MILK

MARKET SHARE: 64% MARKET SHARE: 51% MARKET SHARE: 70%+

School of Intrinsic Compounding

DIVI'S LABS SALES GROWTH
(IN RS.CRORES)
7,500 7,200
6,969

5,394
5,000
4,946

4,064 3,891
3,776
3,115
2,532
2,500
2,145
1,864
1,317
942

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 TTM

School of Intrinsic Compounding

RETURN ON CAPITAL EMPLOYED
40%

36% 36%
34%
33% 33% 32%
30%
28% 29% 29%
27%
25%
22%
20%

10%

0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

School of Intrinsic Compounding

 SOIC
Plumber
Astral Poly Technik targeted APL Apollo Tubes targeted to Fabricator
to capture the Plumbers capture the Fabricators
perception & the Fabricators

MENTAL MODEL:
perception & the Plumbers
Customer attracted the customers. Customer
attracted the customers.

PRINCIPAL AGENT

Pidilite targeted to capture Carpenter

the carpenters perception &
the carpenters attracted
Painter
Asian Paints targeted to the customers. Every
capture the Painters year,42,000 wood-workers
perception & the Painters attend Fevicol Champions
Customer
attracted the customers. Customer Club.

School of Intrinsic Compounding

SEEKING WISDOM IN THE INDIAN STOCK MARKET

School of Intrinsic Compounding

 INVESTING MADE SIMPLE

SOIC FINANCIAL SOIC 100+ SOIC VALUATION

STATEMENT ANALYSIS CASE STUDIES BASED SCENARIOS

SOIC SOIC MASTERCLASS SOIC

FORENSIC ANALYSIS ON MOATS FRAMEWORKS

School of Intrinsic Compounding

SEEKING WISDOM IN THE INDIAN STOCK MARKET

School of Intrinsic Compounding

 INVESTING MADE SIMPLE

SOIC BANKING SOIC CHEMICAL SOIC PLATFORM

SECTOR WEBINAR SECTOR WEBINAR BUSINESS WEBINAR

SOIC API SOIC SHRIMP SOIC MAIZE

SECTOR WEBINAR INDUSTRY WEBINAR INDUSTRY WEBINAR

School of Intrinsic Compounding

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