June 5, 2017

Expert talks/ ideas from the Sohn India Conference

At the 2nd Annual Sohn India Investment Conference, top investors regionally and around the world will convene for a day of fresh market insights. India’s open-ended growth lends itself to new and compelling investment ideas. Funds will go to support cutting-edge pediatric cancer care at the Tata Memorial Centre in Mumbai, recognized as one of the leading cancer centers in South Asia.

... the format of the Conference:

- Every speaker will be allotted 15 minutes
- The speaker have to give their best idea
- No Q&A

The first speaker was Raamdeo Agarwal of Motilal Oswal:

Raamdeo Agarwal’s best pick was PNB Housing Finance. He termed it a ‘Lakh Crore Ki Kahani’


  • In India, there are only 27 Companies which have a market cap of more than 1L Crores.For a company to break into this elite club, there must be strong tailwinds and a long runway in place.Some such megatrends that he has seen in his career are IT Services,Private Banks,Pharma etc
  • He analyzed the Company using his QGLP model.
  • Its a business with secular growth drivers.India’s Mortgage to GDP is very low (9%) and level of urbanization is only 33%.Both these figures can only go up.
  • The Gross NPAs in this business is only 0.8%
  • For all practical purposes, it is Carlyle which owns 38% of the company is running the business.They have put in top class processes and practices.
  • Raamdeo Agarwal quipped –‘I own a housing finance business myself and hence can judge the high quality and scalability of PNB’s processes’
  • The management plans to double assets by 2020. Modi’s ‘Housing For All’ can create a 50L Crores Mortgage Market.
  • The Company has grown at 52% CAGR in the last 4 years and increased its market share
  • He expects the stock to break into the 1 Lakh Crore Club by 2024…a CAGR of 24%

The second speaker was Sunil Singhania of Reliance Mutual Fund

Read more at http://alphaideas.in/2017/06/05/notes-sohn-india-conference-2/

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