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www.ValueInvestingCongress.com8th annual Springvalue investing congress May 6, 2013 Las Vegas, NVThe Elephant is Moving:Investing in the Indian MarketsAmitabh Singhi, Surefin Investments
STRICTLY CONFIDENTIALIndia:Non-correlatedGrowthwww. amritfunds.com
STRICTLY CONFIDENTIALwww.amritfunds.com5,0002
STRICTLY CONFIDENTIALSmaller Companies are Ignored16%Average Foreign Instituional Holding (FII) Holding13.4%14%14.0% 1,000 10,000 10,00011.8%12%10.0%10%PercentageFII Holding13.8%8%6%4.7%4%2%0%0.1% 10Source: Bloomberg, Surefin Researchwww. amritfunds.com 10 - 100 100 - 250 250 - 500 500 - 1,000MCAP ( Mn)3
STRICTLY CONFIDENTIALSmaller Companies are Under-Researched100%99.6%% Companies with No Analyst 7%7.1%10%3.7%0% 10Source: Bloomberg, Surefin Researchwww. amritfunds.com 10 - 100 100 - 250 250 - 500 500 - 1,000Market Cap ( Mn) 1,000 10,000 10,0004
STRICTLY CONFIDENTIALOpportunities Lie in Ignored Companies100%133268301411199.6%90%No. of Analysts %20%4.0%12.7%7.1%10%0.1%3.7%0%2.0%0.0% 10 10 - 100 100 - 250 250 - 500 500 - 1,000 1,000 - 10,000Market Cap (USD Mn)% Companies with No Analyst coveragewww. amritfunds.com% holding by FII# of Co’s 10,000Average FII Holding 2010Source: Bloomberg, Surefin Research5
STRICTLY CONFIDENTIALMany Companies Maybe Interesting - April 201310.0 x9.0 xNormalized P/E8.0 x7.0 x6.0 x5.0 x4.0 xOver 170companiesbetween 10 Mn to 250 Mn MCAP tochoose from3.0 x2.0 x1.0 x15%Source:Surefin Researchwww.amritfunds.com20%25%30%35%5-yr Avg ROE40%45%50%6
STRICTLY CONFIDENTIALIndia Will Add 1 Trillion to its GDP in 4 YearsServices 63%US BnSource: Broker Researchwww. amritfunds.comManufacturing 20%Agriculture 17%
STRICTLY CONFIDENTIALLand Priceswww. amritfunds.com
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STRICTLY CONFIDENTIALVST Tillers65060021x in 12 years(1)XIRR of 33%550Share Price in Rs.500450400350300250200150100500Jan-01Jan-02(1) Including Dividendswww. Jan-09Jan-10Jan-11Jan-12Jan-13
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STRICTLY CONFIDENTIAL1936www. amritfunds.com
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STRICTLY CONFIDENTIAL1.4%www. amritfunds.com4.1%
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STRICTLY CONFIDENTIAL23,50080www. amritfunds.com
STRICTLY CONFIDENTIALAsian Paints5200480025x in 12 years(1)XIRR of 32%4400Share Price in n-02(1) Including Dividendswww. Jan-09Jan-10Jan-11Jan-12Jan-13
STRICTLY CONFIDENTIAL50%www. amritfunds.com
STRICTLY CONFIDENTIALrd1/3www. amritfunds.com
STRICTLY CONFIDENTIALInterior InfrastructureTotal Market Size 4 BnPlywood 2.5 Bnwww. amritfunds.comLaminate 0.8 BnMDF/PB 0.7 Bn
STRICTLY CONFIDENTIALInterior InfrastructureTotal Market Size 4 BnPlywood 2.5 BnLaminate 0.8 BnMDF/PB 0.7 BnOrganized20% 60% 100%35% 25% 15%www. amritfunds.com(1) 50% is Imported(1)
STRICTLY CONFIDENTIALwww. amritfunds.com3.3%
STRICTLY CONFIDENTIALSource: Greenply Investor Presentation, July 2012www. amritfunds.com
STRICTLY CONFIDENTIAL13,000www. amritfunds.com
STRICTLY CONFIDENTIAL7-YrRevenue CAGR 34%Profit CAGR 34%Average RoE 23%MCap 170 MMwww. amritfunds.com
STRICTLY CONFIDENTIALMDFwww. amritfunds.com
STRICTLY CONFIDENTIAL50% Cheaper thanLaminating PlywoodFreight Duty 20% Margin RoCEVery High RoEwww. amritfunds.com
STRICTLY CONFIDENTIAL13,000www. amritfunds.com
STRICTLY CONFIDENTIAL13,000www. amritfunds.com
STRICTLY CONFIDENTIAL-FY’14 P/E - 7x-FY’14 EV/EBIT – 7x- Debt to go down- MDF to go 2.5x over3 years- May get excellentchances to buywww. amritfunds.com
STRICTLY CONFIDENTIAL- High Leverage dueto MDF Expansionin FY10-11- Management isAggressive forGrowthwww. amritfunds.com
STRICTLY CONFIDENTIALGrowthAmitabh : 91-124-4066755/7www. amritfunds.com
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STRICTLY CONFIDENTIALGrowthAmitabh : 91-124-4066755/7www. amritfunds.com
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value investing congress . The Elephant is Moving: Investing in the Indian Markets Amitabh Singhi, Surefin Investments www.ValueInvestingCongress.com. www. amritfunds.com STRICTLY CONFIDENTIAL India: Non-correlated Growth . www.amritfunds.com STRICTLY CONFIDENTIAL 2 5,000 . www. amritfunds.com STRICTLY CONFIDENTIAL Smaller Companies are Ignored 3 Source:
