Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Multi generational investing Idea #3 with two sidekicks

with 24 comments

Idea is Unilever Nepal, an 80% subsidiary of Unilever India. I don’t believe it deserves much research.

Needless to say, company dons all the insane numbers that unleashes torrential bliss for an equity analyst; 100%+ ROE, market leader, 90% dividend payout, wide and increasing competitive position, deep product line, revenue and profit growth etc.

Current Market Price: 10,200 Nepal Rs.

EPS: 903 Rs

P/E: 10

Dividend: 760 Rs

Face Value: 100 Rs.

Market Cap: 900 Crores Nepal Rs, less than 100 million USD.

Dividend yield: 8%

# of shares: 9,20,000 out of which 80% are held by parent, another 10-15% captured by tightwad hoarders, sorry, long-term-investors.

Ultimate Parent’s market cap 110 Billion USD.

Nepal’s per capita income is 1/3rd that of India.

Unilever Nepal has already been 100 bagger over the past 15 years, I am expecting another 200-500 bags over next 30 years, assuming man is not extinguished along with his atomic fate.

Good thing, stock does not show up on any stock-screener because foreign investment is not allowed as yet, investment can be done through Nepal Citizen  alone.

Year Revenues Net Profits Crores * # of Shares** Earning Per Share *   * In Nepal Rs
2002 6.75   920,700 73  ** Face Value 100 Nepal Rs (Hindustan Unilever owns 80%)
2003 Growth 25% 4.25   920,700 46.28 40 Rs Dividend
2004 9.31   920,700 101.38
2005 12.7   920,700 138.3
2006 18.91   920,700 205
2007 23.81   920,700 259 220+ Rs Dividend
2008 145 26.3   920,700 286 250+ Rs Dividend
2009 214 33.5   920,700 364 300+ Rs Dividend
2010 290 51   920,700 555 350+ Rs Dividend
2011 337 61   920,700 664 400+ Rs Dividend
2012 420 70.26   920,700 763 680 Rs Dividend
2013 472.47 83.13   920,700 903 760 Rs Dividend

————————————————————————————————

Sidekick A) Museum Grevin

Every seasoned investor knows traits of a solid company. While one may have to trade off, growth for price, or dividend for yet another dimension. For long term investing, the market position should also be unassailable. eg: India Gate, if it had ticket entry and were a listed entity.

Warren Buffet’s Quote to prospective sellers of fine businesses:

“You can sell it to Berkshire, and we’ll put it in the Metropolitan Museum; it’ll have a wing all by itself; it’ll be there forever,” he says at the February meeting. “Or you can sell it to some porn shop operator, and he’ll take the painting and he’ll make the boobs a little bigger and he’ll stick it up in the window, and some other guy will come along in a raincoat, and he’ll buy it.”

While not close to being  The Louvre, Musée Grévin a 130 year group has wax Museum, resembling  Mademe Tassauds, in Paris, France and another one in  Montreal, Canada is as delightfully attractive for a business owner as it gets. With 5-6% dividend yield and solid business behind it, it could qualify later for a multi-generational investing. I have not done sufficient research to place it on that hallowed altar.

Business looks quite steady, been a 5 bagger in previous decade.

This one can be purchased via Saxo Capital or Kotak Securities or others by Indian Citizens.

http://www.grevin.com/

Sidekick B) Pepsi Cola Philippines

https://www.pepsiphilippines.com

At 3000 Crores INR market cap, 20PE multiple, 18-20% growth looks reasonable for a great brand. Stock has already tripled in the past two years.

Philippines is the 12th most populous country and 300 Bn USD GDP. Country has similar prospects of development as other emerging countries such as India.

Good luck getting rich !

Disclosure: Invested in Unilever Nepal, not invested in two consorts yet

Written by amitdipsite

September 7, 2013 at 8:55 am

Posted in Uncategorized

24 Responses

Subscribe to comments with RSS.

  1. This is brilliant and soo different from mainstream – thanks for sharing Amit!

    And thank you fo this statement (because everyone nowadays spouts 'strong business' lines, while this is the ultimate reality) – “While one may have to trade off, growth for price, or dividend for yet another dimension. For long term investing, the market position should also to be unassailable. “

    Kiran

    September 7, 2013 at 2:53 pm

  2. Nice to know you liked the idea. Thanks for the comments, hope you make money.

    I have wondered what the best business is. Eiffel Tower is close. Several notches ahead for capitalists than India Gate, it actually has tickets and collection box, a very long queue, it is even managed by a Big Bank's subsidiary SETE (Societe d'exploitation de la tour Eiffel). Only if SETE was independently listed. Earned 87 Million USD in revenues in ticket sales last year ! Owned by four local companies and Paris City. One of those four companies is listed

    http://www.tour-eiffel.biz/en/the-eiffel-tower-operating-company

    https://www.google.com/finance?q=EPA%3AFGR&sq=eiffage

    http://online.wsj.com/article/SB10001424127887324328204578569181739181730.html

    Shall we tip Buffett🙂

    Amit Arora

    September 7, 2013 at 9:36 pm

  3. Good list Amit…
    Is there any way we can invest in Nepal's uniliver since we are not Nepal's citizens?

    JK

    September 8, 2013 at 1:21 pm

  4. AMit, Any website that you use to screen good stocks in these small countries?

    JK

    September 8, 2013 at 2:34 pm

  5. How you invested in Unilever Nepal?

    gammyind

    September 8, 2013 at 2:37 pm

  6. JK
    AMit, Any website that you use to screen good stocks in these small countries?

    ———–

    Hi JK,

    There is no screener, I go through one stock at a time from the list of all companies listed on Stock Exchange.

    My expectation is to find only 1 good/great company per year

    Regards

    Amit Arora

    September 9, 2013 at 1:46 am

  7. Amit ..

    In disclosure, you mentioned that you had invested in Unilever Nepal. And at the same time i believe you also not a citizen of Nepal. Any disclosure on how you had invested in it😛. Is there a way that we can also try .. Seems to be a promising bet😀

    Mads

    September 9, 2013 at 6:18 am

  8. Applying for Nepalese citizenship seems to be one way🙂

    Ansh

    September 9, 2013 at 3:52 pm

  9. AnshSeptember 9, 2013 at 8:52 AM

    Applying for Nepalese citizenship seems to be one way🙂
    —————-
    Having a relative

    Marry one

    Befriending one

    Trusting one

    Entering into contract with one who is

    Bribing for citizenship

    are some other options

    Amit Arora

    September 9, 2013 at 8:38 pm

  10. Hi Amit,

    You have recently recommended a lot of stocks in Philippines, PNG, Nepal etc.

    However, Kotak allows only a handful countries… which are more developed than India. How to buy the rest??

    Also Kotak Link says deposit of 6.5 Lakh for this. Is that true??

    JK

    September 11, 2013 at 3:20 pm

  11. Hi JK

    Poorer countries are not necessarily cheaper at all. Mid/Small caps in India are right at top also in terms of return potential.

    Trillions of dollars are flowing all over the world smoothly, esp. for institutions. There are some bargains, however. I found Unilever at PE 35-40 times earnings all over the world including African countries

    Unilever Nigeria is still at 38 PE, I cant remember but in other african countries too it is around that number, same for Nestle etc.

    http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=UNILEVER:NL

    Its country specific like filing for immigration. For Kenya, they should be able to open, part of a Big Banking Group, http://www.sbgsecurities.co.ke/standimg/Kenya/sgbsecurities/index.html

    Try Saxo Captal Singapore for Indonesia, Philipines, Thailand, Vietnam etc.

    Thanks

    Amit Arora

    September 12, 2013 at 7:57 am

  12. You can invest in legally in Nepal by entering into a formal legal partnership agreement and entering into a contract one of whose partners is Nepal Citizen.

    All the best.

    Amit Arora

    September 13, 2013 at 10:29 am

  13. Kitchen market runs into thousands of crores INR. Modular Kitchen space is very crowded and fragmented. Asian Paints is entering this segment.

    http://www.asianpaints.com/pdfs/press_releases/Sleek%20acquisition.pdf‎

    http://www.thehindubusinessline.com/companies/in-sleek-expansion-asian-paints-gets-into-the-kitchen/article5003644.ece

    None has multibagger potential.

    One superlative company in this segment I feel with potential is Acrysil, watch out!

    Amit Arora

    September 16, 2013 at 9:20 am

  14. HI Amit,

    Did you Sold Thangamayil?

    Thanks,
    Vikas

    Veerendra Gowda

    September 17, 2013 at 6:05 am

  15. Hi Amit,

    I know that a lot has changed since you first mentioned Thangamayil but do you still have the same conviction?. Do you still think it is worth making an investment in Thangamayil?

    Regards,
    Shadab.

    mystics

    September 19, 2013 at 10:40 pm

  16. Hi Shadab

    The business is not as attractive as it was before because RBI/Govt. does not want to import gold. 20% of gold imported MUST also be exported.

    Unorganized sector will gain, smuggling will increase. If not 35%+ then Thangamayil can do 20% growth even now. Management is the best in sincerity, focus and clarity.

    Regards

    Amit Arora

    September 20, 2013 at 6:25 am

  17. Thanks Amit for your unflinching and honest opinion as always.

    Regards,
    Shadab

    mystics

    September 21, 2013 at 1:53 am

  18. Sorry never looked closely. Their shirts are awesome for price, brand is quite strong. Some types of companies just don't take off, perhaps due to preponderance of options. Ditto with Raymonds.

    Amit Arora

    September 23, 2013 at 7:03 am

  19. Thangamayil

    http://www.thehindubusinessline.com/news/thangamayil-jewellery-industry-supports-govt-move-to-cut-cad/article5153394.ece

    Only shares I am adding today are Unilever Nepal and Acrysil. Not that they have biggest weightage. Meaning one we hold and are not buying are equivalent to buying it everyday in the morning.

    Anyone interested in the Occult should watch 20 Videos of Gopi Krishna


    Amit Arora

    September 23, 2013 at 7:39 am

  20. 2009 was the year of depression for financial world. However, no movie since then, or before 2009 has grossed more than the movie released in 2009. Avatar http://www.imdb.com/boxoffice/alltimegross talk about silver linings.

    Amit Arora

    September 23, 2013 at 8:21 am

  21. acrysil is indeed a very nyc company with great potential..wud u still advise it to buy nw at ~180..?
    can it be a potential multibagger..??

    Kashish Agarwal

    January 25, 2014 at 10:00 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: