Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Research experience of over 20 years include working at leading Asset Management and Brokerage/Investment Banking Firms.  

I focus primarily on the Asia consumer sector and analyse emerging trends and evolving consumption behaviours to publish investment insights on segments where women and/or youth drive purchasing decisions.

My approach combines in-depth industry and company research with rigorous valuation analysis to help investors make informed investment decisions.

Equity Analyst - Asia Consumer Sector

Walmart-Flipkart Deal Likely to Force Amazon To Loosen Purse Strings in India

A Pricey Deal in Hindsight, Walmart? India Reviews Policy - Amazon, Walmart May Need to Rejig Model

FRETAIL IN | Store Visits Indicate Large Format SSSG to Be Maintained

Jeff Bezos' Letter to Amazon.com Inc's Share Owners - Did It Hint on the Bid for Flipkart in India?

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.

Event-Driven

<a href="https://www.smartkarma.com/entities/11134" target="_blank" data-smartkarma-citation="entities:11134:1">Wal Mart Stores Inc (WMT US)</a> announced the widely expected acquisition of majority stake in Flipkart, India's leading online retailer, yesterday. It stated that "subject to regulatory approval in India, Walmart will pay approximately USD16 bn for an initial stake of approximately 77 percent in Flipkart, formally Flipkart Private Limited." Walmart’s investment includes USD 2 bn of new equity funding and it is in discussions with additional potential investors who may join the round (media reports suggest Google's <a href="https://www.smartkarma.com/entities/11369" target="_blank" data-smartkarma-citation="entities:11369:1">Alphabet Inc Cl C (GOOG US)</a>). Flipkart and Amazon.in ( <a href="https://www.smartkarma.com/entities/409" target="_blank" data-smartkarma-citation="entities:409:1">Amazon.com Inc (AMZN US)</a>) are leading competitors in India's online retail space with a combined market share of more than 60%. The USD16 bn investment is one of the biggest foreign direct investment in India; it is also significant from Walmart's perspective - but this finally gets it entry to India retail after years of waiting on the sidelines, albeit at a price.With this deal, expect more changes to India's online retail landscapethan just change of hands - (1) Expectedly, competition in the segment could exacerbate as the rivals try to prove dominance (2) Walmart would introduce online food and grocery retail (Management indicated so in the Investor conference call), a segment where Flipkart doesn't operate yet while Amazon.in does (3) Online retail sector in India could increasingly be viewed as a 'foreign play' with two well known US brands trying to publicly outcompete each other. We believe the risks of unfavourable regulation can be triggered if the first two changes are rapid enough to cause significant disruptions in retail and related sectors. It could be further heightened if sector gets to be perceived as 'foreign-controlled' as the ruling party and its allies continue to belt out an increasingly 'nationalistic' tune. Local lobby groups are already vocal about negative impact on local businesses of 'unfair' competitive tactics funded by 'dumping of capital' from abroad and, lack of level playing field for brick-and-mortar companies in terms of access to foreign capital. With national elections due in 2019, it could even be a topic of political debates.

 Wal Mart Stores Inc (WMT US) announced the widely expected acquisition of majority stake in Flipkart, India's leading online retailer, yesterday. It stated that "subject to regulatory approval in India, Walmart will pay approximately USD16 bn for an initial stake of approximately 77 percent in Flipkart, formally Flipkart Private Limited." Walmart’s investment includes USD 2 bn of new equity funding and it is in discussions with additional potential investors who may join the round (media reports suggest Google's Alphabet Inc Cl C (GOOG US)). Flipkart and Amazon.in ( Amazon.com Inc (AMZN US)) are leading competitors in India's online retail space with a combined market share of more than 60%. The USD16 bn investment is one of the biggest foreign direct investment in India; it is also significant from Walmart's perspective - but this finally gets it entry to India retail after years of waiting on the sidelines, albeit at a price.With this deal, expect more changes to India's online retail landscapethan just change of hands - (1) Expectedly, competition in the segment could exacerbate as the rivals try to prove dominance (2) Walmart would introduce online food and grocery retail (Management indicated so in the Investor conference call), a segment where Flipkart doesn't operate yet while Amazon.in does (3) Online retail sector in India could increasingly be viewed as a 'foreign play' with two well known US brands trying to publicly outcompete each other. We believe the risks of unfavourable regulation can be triggered if the first two changes are rapid enough to cause significant disruptions in retail and related sectors. It could be further heightened if sector gets to be perceived as 'foreign-controlled' as the ruling party and its allies continue to belt out an increasingly 'nationalistic' tune. Local lobby groups are already vocal about negative impact on local businesses of 'unfair' competitive tactics funded by 'dumping of capital' from abroad and, lack of level playing field for brick-and-mortar companies in terms of access to foreign capital. With national elections due in 2019, it could even be a topic of political debates.

월마트의 플립카트 인수는 인도의 소매 및 정치 현장을 뜨겁게 달굴 수 있다