MOI Global | The Membership Community of Intelligent Investors

Vinati Organics: Niche Global Leader in Selected Specialty Chemicals

April 16, 2021 in Asia, Asian Investing Summit 2021, Audio, Equities, Ideas

Ayaz Motiwala of Amala Emerging Asia Fund presented his investment thesis on Vinati Organics (India: VO) at Asian Investing Summit 2021.

Thesis summary:

Vinati Organics is a specialty chemicals company in India, with a business philosophy based on developing products with clean and green chemistry. Vinati is the leading player globally in Acrylamido Methylpropane Sulfonic Acid (ATBS), which accounts for more than one-half of revenue, and a leading player in Isobutyl Benzene (IBB), which accounts for one-quarter of revenue.

The business is run by a first-generation entrepreneur whose team is focused on launching products that have a unique chemical process, which gives Vinati a long-term cost advantage and the potential to become a leading global player. The company’s product development capability is supported by captive research and industry partnerships with leading Indian and international players in the field of specialty chemistry.

Vinati has been a good allocator of capital, as demonstrated by ROE consistently in excess of 25% over the last decade even as the asset base has expanded more than ten-fold. During this period, the company has compounded revenue at 16% while operating profit and net profit have compounded at 24%.

Vinati continues to grow in existing products. ATBS capacity has recently been expanded from 25,000 tonnes per annum to 40,000 tonnes per annum. It has launched a range of Butyl Phenols using in-house manufactured Isobutylene (IB) at an investment of Rs. 2.5 billion. These actions and the recent acquisition of manufacturer Anti Oxidants (a downstream product using Vinati’s existing products) are the key drivers of revenue growth in the medium term.

Ayaz expects revenue and profit to compound in excess of 20% over the next three to four years while the company maintains solid profitability.

The shares recently traded at 9x revenue and 32x earnings based on Ayaz’s FY23 estimates. Ayaz believes the company has a room to surprise on the upside if it is able to rapidly scale up the antioxidants opportunity. The founder and his family own 74% of shares outstanding, close to the highest level allowed for a public company in India.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Ayaz Motiwala is an investment professional with two and half decades of experience. He currently manages The Amala Emerging Asia Fund as part of Nivalis Partners Hong Kong. Ayaz is also the co-founder of QRC Investment Advisors LLP which is a SEBI licenced portfolio management services company based out of Mumbai, India. Previously, he served as an advisor to Motiwala Capital, a registered investment advisor founded by his brother Adib Motiwala in Dallas, Texas. Ayaz’s previous experience includes roles with Samena Capital, a special situations fund based in Hong Kong, as well as Highbridge Capital Management HK, where he ran a portfolio for India and ASEAN markets while also contributing ideas to the Asia Opportunities Fund.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Praj Industries: Technology and Capital Equipment Leader

April 15, 2021 in Asia, Asian Investing Summit 2021, Asian Investing Summit 2021 Featured, Audio, Diary, Equities, Ideas

Rahul Saraogi of Atyant Capital Advisors discussed investing in India and presented his investment thesis on Praj Industries (India: PRJ) at Asian Investing Summit 2021.

Thesis summary:

Praj Industries is a technology and capital equipment company and a world leader in the ethanol, brewery, biogas, and hipurity segments. It has 70% market share in India, a country with an ethanol blending target of 20% (up from 8%). Rahul sees strong growth ahead for the company and its end markets.

Praj has conservative and healthy financials, with $47 million in cash and no debt. Corporate governance is exemplary, with an ethical promoter and efficient capital allocator at the helm.

Ultimately, Rahul sees Praj as more of a technology business than a capital equipment business. He anticipates both earnings expansion and multiple expansion in the coming years.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Rahul Saraogi is the founder and managing director of Atyant Capital Advisors, advisor to the Atyant Capital family of funds. In the last two decades he has focused on the Indian markets. His mission is to consistently identify the best 10-15 investment ideas from among the thousands of publicly- traded Indian corporations. Rahul’s value-based investment philosophy stands apart due to his belief in the paramount importance of corporate governance, specifically how management operates with its minority shareholders in mind. Rahul is the author of Investing in India: A Value Investor’s Guide to the Biggest Untapped Opportunity in the World a definitive guide on navigating the Indian markets published by John Wiley & Sons.

Rahul graduated from the Wharton School of the University of Pennsylvania with a degree in Economics. Outside of Atyant, he practices Vipassana, a 2,500 year-old meditation technique that helps people see things as they really are. Rahul splits time between Chennai, India and Miami.

Zydus Wellness: Transformed via Acquisition of Heinz India’s Portfolio

April 15, 2021 in Asia, Asian Investing Summit 2021, Audio, Equities, Ideas

Vinod Moras of Kiara Advisors presented his in-depth investment thesis on Zydus Wellness (India: ZYDUSWELL) at Asian Investing Summit 2021.

Thesis summary:

Zydus Wellness is a health and wellness products company in India, with a dominant position in niche food and personal care products. The company dominates five of the seven categories in which it operates. Most of the products are in their early stages of consumer penetration, affording the products a long runway for growth. Rising disposable income and chronic diseases in India are resulting in an increasing focus on Indians leading healthier lifestyles, and Zydus should be the biggest beneficiary of this structural trend.

The company received a major boost after the acquisition of Heinz India’s consumer portfolio. The total addressable market size has increased fourfold, alongside entry into four new product categories. The acquisition has given Zydus the supply-chain and distribution scale that will let it compete against the bigger consumer companies.

Zydus has a good track record of launching market.leading products due to strong management and R&D teams as well as pharma company parentage.

The recent market quotation is attractive in light of the growth potential for the company’s products and the high quality of the management team.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Vinod Moras is a value investor focused on Asian equity markets scouting for undervalued companies with high quality business models, strong moats and top quality management teams. He is currently a senior investment analyst at KIARA Advisors, an Asia focused long/short equity fund, covering India and Southeast Asia markets. In his prior role, Vinod served as a senior investment analyst at APS Asset Management, a $3bn Asian hedge fund investing in long/short equities focused on the Chinese internet sector and India. Vinod is a member of the Value Investors Club (VIC) since 2010. Vinod holds a Master’s degree in Finance from New York University, Polytechnic Institute.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

ISGEC: Global Manufacturing, Engineering, and Construction Player

April 15, 2021 in Asia, Asian Investing Summit 2021, Audio, Equities, Ideas

Viraj Mehta of Equirus Long Horizon Fund presented his investment thesis on ISGEC Heavy Engineering (India: ISGEC) at Asian Investing Summit 2021.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Viraj Mehta serves as Fund Manager of the Equirus Long Horizon Fund, a long-only fund. Viraj has a decade of experience in the field of investing. He was selected by the Wall Street Journal as part of “Asia’s Master Stock Picker” series for India. He was previously a member of the fund management team at Franklin Templeton Investments, managing $6 billion in assets. Viraj was the lead analyst for the small companies fund at Franklin Templeton.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Kaveri Seed: Owner-Operated Company With Growth Opportunities

April 15, 2021 in Asia, Asian Investing Summit 2021, Asian Investing Summit 2021 Featured, Audio, Diary, Equities, Ideas

Rajeev Agrawal of DoorDarshi India Fund presented his investment thesis on Kaveri Seed Company (India: KSCL) at Asian Investing Summit 2021.

Thesis summary:

Kaveri Seed is a top-three seed company in India, with ~10% market share of the hybrid seed market. Kaveri is among the top three producers of cotton seeds, with ~15% market share. It is a top-three procurer of maize hybrid seeds and ranks among the top five players in the rice market.

Seed is less than 5% of the cost to a farmer. As a result, a good seed producer commands high margins. Kaveri has consistently earned 20+% margins at the EBITDA and PAT levels. The business has low capital intensity, thus allowing Kaveri to earn 20+% ROE and ROCE as well.

The shares recently traded at a P/E of ~10x and EV/EBIT of ~9x. The company’s diversified seed portfolio and growth opportunities in rice, maize, and vegetable seeds provide an additional margin of safety. Lastly, the business is run by an owner-operator with 55% ownership. Minority shareholder interests are well-aligned with those of management.

For additional investment insights, please see a recent article by Rajeev.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Rajeev Agrawal is the Fund Manager and Managing Partner at DoorDarshi India Fund. DoorDarshi India Fund is based out of the US and enables investors to benefit from opportunities in Indian equities. Rajeev is also the founder of DoorDarshi Advisors where he has been working with investors who have a long time horizon.

Rajeev has been investing in the US and Indian equity markets for 15+ years. Rajeev follows Value Investing principles and finds that the Indian equity market provides wonderful opportunities for his style of investing. Prior to starting DoorDarshi, Rajeev was a Technology executive focusing on the Financial Industry and has worked with IHS Markit, Goldman Sachs, Bank of America, JP Morgan and Dresdner Bank. Rajeev did his B.Tech from IIT Bombay and MBA from IIM Calcutta.

REA Group: Leading Australasian Real Estate Listings Platform

April 14, 2021 in Asia, Asian Investing Summit 2021, Audio, Equities, Ideas

Andrew Macken of Montaka Global Investments presented his investment thesis on REA Group (Australia: REA) at Asian Investing Summit 2021.

Thesis summary:

REA Group is the leading Australasian property-listings platform. In its home market of Australia, it is by far the largest listings platform (in a highly-concentrated market) and adds significant value to property buyers and sellers.

Andrew believes REA is substantially under-monetizing today relative to the size of its addressable market. Furthermore, REA’s domestic addressable market will likely double over the coming years driven by higher housing turnover (supported by new regulation) and higher property prices (supported by central bank policies).

In addition to Australian property listings, REA has profitable growth options in other real estate services in Australia; as well as multiple market-leading positions in attractive property markets across Asia, including India and Indonesia.

Andrew believes REA is a stock that at first appears expensive at 39x EV/EBITDA, but is undervalued relative to its longer-term earnings power – which brings the effective EV/EBITDA multiple down to well below 10x.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Andrew Macken is the Co-Founder and CIO of Montaka Global Investments, a global equity manager based in Sydney and New York. Prior to establishing Montaka, Andrew worked as a senior member of Jim Chanos’ research team at Kynikos Associates, a global equity long/short fund based in New York. Andrew holds a Master of Business Administration (Dean’s List) from the Columbia Business School in New York. Andrew also graduated with High Distinction with a Master of Commerce; and First Class Honours with a Bachelor of Engineering from the University of New South Wales in Sydney.

For additional perspectives, please see a recent article by Andy.

Sky Network TV: Strong FCF Generator With Cleaned Up Balance Sheet

April 14, 2021 in Asia, Asian Investing Summit 2021, Asian Investing Summit 2021 Featured, Audio, Diary, Equities, Ideas

Peter Kennan of Black Crane Capital presented his investment thesis on Sky Network Television (New Zealand: SKT) at Asian Investing Summit 2021.

Thesis summary:

Sky Network Television is a monopoly New Zealand satellite pay TV operator with a growing number of streaming subscribers. It connects via satellite to one-third of New Zealand homes. Sky has exclusive rights to NZ rugby for the next five years. The company has a market cap of NZ$ ~300 million and trades at 2x EBITDA, with zero net debt.

Replay this LIVE session (streamed on April 15):

slide presentation audio recording

About the instructor:

Peter Kennan is the founder of Black Crane Capital. Prior to founding Black Crane in 2009, Peter was a leading corporate financier with UBS Asia Pacific. He has 25 years of investment and corporate finance experience across a diverse range of sectors and transactions. With UBS, Peter was Head of Asian Industrials Group for UBS Asia, a corporate finance sector team covering energy, infrastructure, resources, consumer/retail and general industrial companies. He achieved number 1 team rating in Asia in 2006 and 2007. Peter was also the Head of Telecoms and Media sector team for UBS Australia specializing in M&A, advising on many large, complex transactions. Prior to UBS, Peter spent 7 years with BP in a variety of engineering and commercial roles.

CARE Ratings: Debt-Free, Oligopolistic Business at Start of Cyclical Upturn

April 14, 2021 in Asia, Asian Investing Summit 2021, Asian Investing Summit 2021 Featured, Audio, Diary, Equities, Ideas, Transcripts

Amey Kulkarni of Candor Investing presented his in-depth investment thesis on CARE Ratings (India: CARERATING) at Asian Investing Summit 2021.

Thesis summary:

CARE Ratings is a debt-free, non-commodity, oligopolistic business at the start of a cyclical upturn, available at a cheap valuation.

Credit rating agencies are market infrastructure entities in India and are tightly regulated by SEBI (Securities & Exchange Board of India). Financial institutions, banks, and debt investors rely on credit rating agencies to make pricing and investment decisions. The credit rating market tends to be oligopolistic in nature; in India, the top five players control the bulk of market share.

CARE Ratings is the second-largest credit rating agency in India, with 18% market share. This ranks behind CRISIL (46% share) but ahead of ICRA (18%), India Ratings (12%), and Brickwork ratings (6%).

Headline issues have affected CARE Ratings, resulting in a below-average P/E ratio of 16x, as compared to CRISIL’s 37x and ICRA’s 34x. Amey believes that the key issues have been adequately addressed and that CARE’s discount valuation is unwarranted.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Amey Kulkarni operates a boutique investment advisory that partners with select individuals and family offices in their journey of wealth creation through investments in the Indian equity markets

Amey worked in the corporate sector for a decade with experience spanning across India, Europe and African markets. Amey has also worked closely with the top management of L&T (Chairman’s office) and the MD&CEO office at Jindal Steel & Power handling responsibilities of corporate strategy and business planning.

Having gained unique insights into the internal workings of large diversified businesses from close quarters, Amey now applies the learnings to run an investment fund at Candor Investing.

At Candor Investing, Amey invests in companies that don’t require external capital, have the ability to grow for a long time and are run by honest and hungry management.

Being passionate about sharing the learnings and insights gained out of his investment experience, Amey occasionally takes up visiting faculty assignments at various Indian business schools. He is also a contributing author to the Moneylife Magazine which is renowned for pointing out corporate governance issues and championing investor awareness campaigns.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
MOI Global