Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Thematic (Sector/Industry)

Debunking the conventional wisdom of consumer stocks being defensive plays, India consumer stock indices have fallen in line with the broader market in the recent stock market fall (both down 10% in 1 month). It is more than just a valuation correction; we believe India consumer sector too could be adversely impacted if prevailing macro headwinds - India retail fuel prices are at historical highs, the currency at historical lows and interest rates expected to rise - prevail. The erosion in household spending power/sentiment due to increase in fuel prices, higher EMIs and consumer aversion to credit-based discretionary purchases given expected increase in interest rates can slow down growth in consumer sector. Secondly, higher prices for crude-based or imported raw materials will impact manufacturing at consumer companies leading to input cost pressures affecting their margins at a time when pricing power is weak.

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In our detailed commentary below, we summarise the expected impact of macro headwinds on various segments/companies of the India consumer sector. We have backed it up with a detailed update on India retail fuel prices and its build up, analysed the impact on individual, commercial and industrial users and assessed how and why it can affect India consumer sector growth and margins.
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Debunking the conventional wisdom of consumer stocks being defensive plays, India consumer stock indices have fallen in line with the broader market in the recent stock market fall (both down 10% in 1 month). It is more than just a valuation correction; we believe India consumer sector too could be adversely impacted if prevailing macro headwinds - India retail fuel prices are at historical highs, the currency at historical lows and interest rates expected to rise - prevail. The erosion in household spending power/sentiment due to increase in fuel prices, higher EMIs and consumer aversion to credit-based discretionary purchases given expected increase in interest rates can slow down growth in consumer sector. Secondly, higher prices for crude-based or imported raw materials will impact manufacturing at consumer companies leading to input cost pressures affecting their margins at a time when pricing power is weak.


In our detailed commentary below, we summarise the expected impact of macro headwinds on various segments/companies of the India consumer sector. We have backed it up with a detailed update on India retail fuel prices and its build up, analysed the impact on individual, commercial and industrial users and assessed how and why it can affect India consumer sector growth and margins.


Defusing Defensiveness - India Consumer Stocks Feel the Burn from Retail Fuel Price Highs

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform using the Discovery Tool.  Notable themes include:<ul><li>Energy and Materials stocks continue to strengthen, with the exception of Australian names. </li><li>Financial stocks are strengthening, excluding Australian names. </li><li>Regional casino and education stocks are exhibiting uptrends.</li></ul>See the attached report for a complete list of our recommendations from this list.

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform using the Discovery Tool.  Notable themes include:Energy and Materials stocks continue to strengthen, with the exception of Australian names. Financial stocks are strengthening, excluding Australian names. Regional casino and education stocks are exhibiting uptrends.See the attached report for a complete list of our recommendations from this list.

Popular Stocks, Attractive and Unattractive Charts

India

Welspun Enterprises Limited is an operating company in the infrastructure business. The Company also has investments in Oil & Gas Exploration.

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Welspun Enterprises (WELENT IN)

Defusing Defensiveness - India Consumer Stocks Feel the Burn from Retail Fuel Price Highs

Debunking the conventional wisdom of consumer stocks being defensive plays, India consumer stock indices have fallen in line with the broader...

Devi Subhakesan

Popular Stocks, Attractive and Unattractive Charts

Actionable Charts from Smart Karma’s Most-Searched Tickers.We ran through a list of the most frequently searched tickers on the SmartKarma platform...

Vermilion Research

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52-week Range

Market Cap (USDm)

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