I will share an interview with Rahul Saraogi of Atyant Capital in this article.
I found it to be a good view. There are clearly some good snippets that you will find useful.
Value Investing in India – Rahul Saraogi of Atyant Capital
There are some interesting points about companies which allocate capital well and those who don’t. There is a good section around 30:00 minutes which talks about infrastructure. He talks of how managements of infrastructure companies made terrible mistakes in the period before 2008. The high debt levels and poor transparency levels associated with infrastructure companies are well covered.
He then talks of consumer businesses like FMCG and durables and the prospects for these sectors. He talks of how valuations have shot up too high. In an earlier article I had analyzed Nestle’s valuations and how it has affected stock returns over the long-term.
He moves on to talk of the agriculture sector. He makes an interesting argument where he talks of migration from rural to urban areas. That, with lesser people left in rural markets, they will have greater purchasing power and will make for a more attractive market with time. It is food for thought.
He then talks of how he approaches valuations. What is the right discount rate? How do you decide to sell?
See it yourself.
Do let me know if you found it useful. What is your take?