Snapshots That Wow!

Relying on Reliance!

JioHotstar has the highest number of paying subscribers in India, of any streaming platform. The number - 30cr that stands at 15x of Netflix’s 2cr is massively aided by Jio’s control over digital rights of a lot of cricket properties.

Source: HSBC

Surya devta ki kripa hum par bani rahe!

“India is electrifying faster than China did at a similar level of economic development, using fewer fossil fuels per capita. This is largely due to the availability of cheaper solar panels and electric cars, allowing India to reach 5% solar penetration in its power mix and 5% electric car sales at lower income levels. While India still relies heavily on fossil fuels, its per-capita consumption is significantly lower than China’s was at the same stage of development.”

Source: Bloomberg

The CAC Tax is about to be hiked!

The launch of agentic coding has resulted in an explosion of new apps coming to the market. Regardless of which apps eventually survive, there will an initial rush on google and meta ads to get traffic going on these apps! CAC (cost of acquisition) across the board is about to see a hike!

Source: Wells Fargo Securities

Why is no one singing, Humka peeni hai peeni hai?

“Alcohol companies are sitting on huge stockpiles as demand keeps falling. Five of the world’s largest listed spirits makers – Diageo, Pernod Ricard, Campari, Brown-Forman and Rémy Cointreau – are holding about $22bn worth of ageing spirits, the highest inventory level in more than a decade.” Between GLP1, weakening consumer sentiment amidst high inflation, and in general preference for non-alcoholic highs for genZ- there seems to be a structural fall in the demand for spirits globally.

Source: FT

Sirf do bache hai Trivedi!

"Perhaps the Mag 7 dominance is fading; if 5 of these 7 companies underperformed the S&P 500, that means the other 493 companies are catching up in both price appreciation and (eventually) earnings growth."

Source: Barry Ritholz

PEG the growth rate silly!

“26 years of Nifty 500: starting P/E has almost no relationship with next year's return. 2007 and 2011 started at similar valuations around 20x. One returned +63%, the other -25%.”

There is a weak correlation coefficient of -0.38 (where 1 implies perfect correlation and 0 none). Stock prices follow future earnings growth which unfortunately are not captured in the PE ratio at all!

Source: Capitalmind