GAGA Share Market News

[hfe_template id='11223'] [ad_1] Synopsis There are phases when mid-cap stocks come under pressure and are among the worst performers. We have seen one such phase in the past few months. Yet, if you take the last 10 years into account, they have provided the best returns, with mid-cap indices being the top performers in that period. If you did not own mid-caps, your returns in one of the longest bull runs, would not have been very high. One reason why mid-caps do well when an economy like India grows rapidly is that these companies are nimble and capable of improving their operating matrix. And for mid-caps, “cost of capital” is an important part of this matrix. So lower costs on this front works in their favor. Some 15 years back, a company from a large industrial house raised money by floating corporate bonds at X% interest. A mid-size company raised money at X% plus 200 basis points. It was thus paying 2% more for the capital, putting it at a disadvantage. Today, that...

[hfe_template id='11223'] [ad_1] Synopsis The best known name in the Indian dairy sector is Amul. But the chances of Amul becoming a listed company is next to none. So, how does one take exposure to the dairy sector? Through a listed company? But, among the listed entities in this sector, one struggles to find any that have size, scale, and a brand – the three things crucial for a company to generate profits for itself and create wealth for investors. All the listed firms have single-digit net margins. In a business where margins are thin, it is size and scale that matter. Yet, as they say, there is no substitute for experience. And experience counts for a lot in the dairy business. So there are companies here that are reaching an inflection point. The dairy business is not an easy space to be in. Even the best dairy industry player like Amul took decades to reach where it is today. It is a business where challenges are present all year around. But if you scale the busin...