Archive | July, 2017

Buy Buy ITC

19 Jul

Todays headlines has been the 13% drop in ITC stock – as an unexpected cess is expected to affect the bottomline. So the mood of the day is SELL SELL SELL. And thats how the market operates – knee jerk reaction. The impact of higher Taxes on ITC is a regular phenomena – Cigarettes are one of the highest category Tax products in the country – and the stock always bounces back to new highs. This is the perfect time to look at the history of the stock.

ITC is one of the best buys in the market. And with a 13% drop – this is a great opportunity to get into the stock. Every long term investor must have this in their portfolio.

Not many know that ITC’s FMCG business, which includes packaged food, personal care and education stationary products, crossed the Rs 10,000 crore revenue milestone in 2016-17 with sales growing by 8% to Rs 10,511.83 crore. Thats colossal and with a fast growing India – consumption stocks like ITC will continue to grow rapidly.

India has over 100M Smokers. By 2015, there were roughly equal numbers of men smoking cigarettes or bidis. About 11 million women aged 15–69 smoked in 2015. The absolute numbers of men smoking any type of tobacco at ages 15–69 years rose by about 29 million or 36% in relative terms from 79 million in 1998 to 108 million in 2015. This represents an average increase of about 1.7 million male smokers every year. Habits die hard – and whatever be the price consumption will continue to grow. As affluence steps in more Bidi smokers will switch to Cigarettes. Legal cigarettes constitute only 11% of all tobacco usage in India and the per capita consumption of Cigarettes in India is one of the lowest in the world.

(Source – Trends in bidi and cigarette smoking in India from 1998 to 2015, by age, gender and education – http://www.cghr.org/wordpress/wp-content/uploads/low_bmjgh-smoking-trends-paper.pdf

Click to access ITC-Corporate-Presentation.pdf

Lets look at the story in some simple visuals and question the knee jerk reaction

 

ITC  Crashes on July 17th – Panick button – everyone is in sell mode – headlines scream of thousands of crores of losses – mostly  notional.

 

 

 

Now look at the ten year graph and how ITC has given annualised returns of 18.6% beating the Sensex handsomely

 

 

Even in a 2 year period the stock has gone up from 190 to 280 ( after rallying to 350) and remember the 280 price is post Split. 

 

 

Talking of Bonus – this is one stock that gives you Bonus with regularity every 5 years 

 

And here is the company performance track record over the last 20 years – a tough one to beat and with Consumption and growth in India accelerating things can get only better. 

 

So make the most of it – remember every great stock gives you an opportunity to enter and this is the time to BUY ITC.

 

 

 

 

 

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Soul Space @ Prestige Mayberry

7 Jul

Building a house in India is a long project that can run into many years. In the US you can get a custom designed house in 6 months – in India it could take you 6 months just to do the interiors.

Bangalore has been a happy ground for Trading Apartments and Villas as the prices of real estate soared between 2000 & 2010. You could book a property at Pre Launch and sell it on completion for almost 50 – 60 % profit in a few years. Those were the days when the complexes were small and the builders delivered on time.  Things changed after 2010 – projects dragged on , the complexes became monstrously large with 1000’s of apartments and the Builders camouflaged the cost under so many small sub headings that the billboard launch rate of 4999/- sft would actually be 6999/- sft.

Having done enough of “Buy – Sell”  – I finally wanted a dream house. After 25 years of work I had earned the right to build it.  A nice green gated complex , close to the main road but tucked away  from the hustle & bustle of the city. Not very crowded but a good community with excellent amenities & security .  And it was sheer luck that we chanced on a property like this.

In 2012 as we were aboard “The Palace on Wheels” a Broker called my friend with a great opportunity to invest in the Pre -launch of a project that met most of the above criteria. And thats how we invested in Prestige Mayberry – a lovely complex of 180 Villas spread across 25 acres in Whitefield near Hope Farm Junction. Prestige delivered on time ( a 6 month delay does not count in todays world where projects are delayed by 5 – 6 years) and price and we took possession in 2016 Sep.

Then came the dilemma of doing the Interiors – I had a very clear idea on what I wanted. But there were too many options and the price quoted varied from 40 Lacs to 10 Lacs. Getting interiors done is a complex job – its tougher than buying a house. Do you go with a Big established guys with German / Italian credentials  who will charge a hefty premium or choose one of the hundreds who will start calling you once your house is ready. Do you fall for the beautiful looking factory finish modular stuff or the proven and tested carpenter who may lack on finish and aesthetics but delivers solid stuff. The options for Ply, Veneer, Paints, Hinges, Handles  are all so many that its very easy to get confused. A good Carpenter is an asset but you will need a good Architect also  – and here are a few simple guidelines to choosing one

  • Look for Experience – Minimum 10 Projects, Talk to the clients with who they have done the work – don’t just see the photos
  • Check their contacts not just with Carpenters but with Plumbers, Civil Artisans , Electricians , Painters etc – in a 30 Lac project the woodwork will only be 50%
  • The Kitchen is complex – strongly suggest you go with an experienced Branded player for that even if the costs are higher
  • Discuss the Business Model – who is paying the vendor their bills , how are you avoiding double taxation , are the vendors insisting on Cash or are they OK with Cheques

Remember – you can have a very clear idea on what you want – but getting it executed is a big challenge. If you want a dream house you need to invest time. From Koramangla to Whitefield is a 90 min one way drive – we did that twice a week for almost 6 months. We loaded tiles and granite and bricks in our Innova and visited numerous markets & stores multiple times. After a lot of time , effort and money and a 2 month project delay – I think I  finally got 80% of what I had in mind. The Architect. the Carpenters and all the other vendors where very supportive all through the journey – and its thanks to their commitment and dedicated effort this project has finally happened. Its a great learning.  

So what is Unique about this House 

This is not a normal house  – its a bright energised space. A 2400 Sft Villa across two levels – its ideal for a couple or a small family. . With a house like this you don’t need to hunt for an offbeat retreat – you can find the peace and quiet you seek right here in Bangalore.

A Large Master bedroom opening to a spacious balcony, a lovely study room and a family space is what we have  in the 1st floor.

The Ground floor  has a beautiful and serene meditation room , a large bright sunny fully equipped kitchen with Microwave , Grill , Dishwasher and the Dining and Living space that opens to the garden.

The Villa comes with 3 Bathrooms (2 Attached) and a small garden where a gardner is already tending to Mango, Pomegranate , Guava , Papaya trees and a host of flowering plants. You have space to park two cars. the visitor Car park is also very close to our Villa

The Villa Number 27 is a special number –  it Totals to 9.

The painting , pictures and the artefacts in the house make it bright and energetic – and you will sense it when you enter the house. A semi furnished house – its ready with almost everything AC’s, Storage , Crockery Units, Shoe Racks , even a Gas Cylinder and clothes line. All that you need is your Bed, Sofa, Dining table  and Refrigerator. (That can also be organised for the tenant if required) – and you have 24 by 7 power and water.

Whats Unique about Prestige Mayberry 

Its not cluttered, Its rare to find in Bangalore today a Builder developing a 25 acre property with only 180 Villas leaving so much greenery all around. The Club House is fabulous – a beautiful large pool , Squash Courts , Two Badminton Courts , A well equipped Gym and a lot more. The design and quality of the clubhouse like in any Prestige Property is 5 Star.

And its so close to everything – just 200 m from the Main Whitefield Road , Hope Farm Junction is a stones throw away. The 3 Malls at Whitefield are easily accessible, Hospitals , Shops, Temples , Churches, Restaurants – all at close proximity . ITPL and the main Business District of Whitefield is less than 2 Km. And the Whitefield Police Station is round the corner. A professional Cricket Coaching centre is right behind the property. The best of International School on Varthur Road is a 20 min drive.

With all this it just amazes me that a 3BHK flat in a 15 year old complex in crowded and messed up Koramangla demands the same rent as this beautiful Villa in Whitefield !

And this lovely place is available on Rent  – given that we have spent so much passion in getting this house ready we will be picky in choosing our Tenant but for the right person we will be very flexible on Rent.

So if you are peace loving small family or couple  – do reach out to us at

+ 91 98452 18532 ( Whats App or Message Only)

vak_1969@yahoo.com

Few More Photos of the Place 

 

The Sports Club adjacent to Mayberry 

The Sports Club adjacent to Mayberry 

 

 

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