Author: AasthaFinTech

✅ In trading and market analysis, terms like long buildup | long unwinding | short buildup refer to specific market behaviors related to the positions traders take on assets, typically in the context of derivatives like futures and options. Here’s a breakdown of each term:

➡️ 1. Long Buildup

– Definition: A long buildup occurs when traders are increasingly buying into a stock or asset, indicating a bullish sentiment. It is characterized by rising open interest along with an increase in the price of the asset.

– Implications: This suggests that more traders are entering positions expecting the price to rise. It can indicate confidence in upward price movement.

– Example: If a stock’s price rises and open interest increases, this may signify a long buildup as traders are accumulating positions in anticipation of further price gains.

➡️ 2. Long Unwinding

– Definition: Long unwinding happens when traders start closing their long positions, often leading to a decline in the asset’s price. It is characterized by decreasing open interest along with a falling price.

– Implications: This indicates that traders may be taking profits or cutting losses, suggesting a bearish sentiment or uncertainty about future price increases.

– Example: If a stock’s price starts to fall and open interest decreases, this indicates long unwinding, as traders are selling their positions.

➡️ 3. Short Buildup

– Definition: A short buildup occurs when traders are increasingly taking short positions, expecting the asset’s price to decline. This is characterized by rising open interest while the price may be stable or declining.

– Implications: This suggests a bearish sentiment among traders, who are betting on the asset’s price falling.

– Example: If a stock’s price is stable or dropping and open interest increases, this may signify a short buildup, indicating that more traders are entering short positions.

➡️ Conclusion

Understanding these terms helps traders assess market sentiment and make informed decisions about entering or exiting positions. Long buildup indicates optimism, while long unwinding and short buildup suggest caution or negative sentiment among investors.

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The Rising Demand for Super-Luxury Cars in India: Trends and Future Outlook

Introduction

India’s automobile sector is undergoing a remarkable transformation, particularly in the super-luxury car segment. What was once considered a luxury for the elite is increasingly becoming a part of a broader consumer base. Brands like Ferrari, Lamborghini, Aston Martin, and McLaren are experiencing unprecedented growth in sales, reflecting a shift in consumer preferences and rising aspirations among India’s new social class.

Current Trends in Super-Luxury Car Sales

1. Sales Growth Amidst Overall Decline:
– Despite a 7% drop in overall auto sales in India during the first half of 2024, the super-luxury car segment is thriving. Lamborghini, for instance, saw a 12% increase in sales in 2023 compared to 2022, with all units sold out and new bookings extending into 2026.

2. High Demand Across Brands:
– Ferrari, Aston Martin, McLaren, and high-end models from Audi and Mercedes-Benz are in high demand. Waiting lists for these vehicles can extend up to a year, indicating a strong market for luxury automobiles.

Drivers of the Surge

1. Generational Shift:
– The younger generation in India is more inclined towards spending on luxury goods. This shift is influencing the market, as younger consumers seek to enhance their status and lifestyle through luxury purchases.

2. Rising Wealth:
– Economic growth has led to an increase in the number of ultra-rich individuals. According to the Knight Frank Wealth Report, the number of individuals with a net worth exceeding Rs 300 crores is expected to grow from 13,263 in 2023 to 19,908 by 2028.

3. Brand Value and Status Symbol:
– Super-luxury cars serve as status symbols, with buyers perceiving ownership as a mark of prestige and success. The brand value associated with these cars contributes significantly to their allure.

4. Tax Benefits:
– Tax incentives, including benefits from depreciation for companies and savings through corporate car leases for individuals, make luxury car purchases more attractive and financially feasible.

Implications for Investors

1. Investment Opportunities:
– The growing demand for super-luxury cars opens up various investment opportunities. Investors can look beyond the automobile sector to related industries, such as luxury car dealerships, service centers, and automotive accessories.

2. Expansion of International Brands:
– International luxury brands are expanding their footprint in India, creating prospects for foreign investment and business ventures in the Indian market. The recent launch of Aston Martin’s ‘Vantage’ and Audi’s new models in India exemplifies this trend.

3. Market Growth Potential:
– The supercar market in India has seen a fourfold increase from 2021 to 2024, with sales expected to reach 1,200-1,300 units this year. This rapid growth signals a durable and expanding market segment.

Future Outlook

The super-luxury car market in India is not just experiencing a temporary surge but is poised for sustained growth. Key indicators include:

– Increasing Sales Figures: The number of supercars sold annually is steadily rising, reflecting growing consumer interest and economic capability.

– Long-Term Trends: The factors driving the demand—such as rising wealth, generational preferences, and brand value—are likely to continue influencing the market positively.

– Economic and Policy Support: Continued economic growth and favorable tax policies will further support the expansion of the luxury automobile sector.

Conclusion

The trend of rising demand for super-luxury cars in India is indicative of a broader shift in consumer behavior and economic prosperity. For investors, this presents numerous opportunities in the luxury automotive sector and related industries. As the market for super-luxury cars continues to grow, it will likely become an increasingly significant component of India’s automotive landscape.

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In-Depth Analysis of the Indian Footwear Industry

*Introduction*

The Indian footwear industry is a crucial component of the national economy, significantly impacting industrial development and contributing to global footwear production. With its evolving landscape shaped by fashion trends, technological advancements, and changing consumer preferences, India has established itself as a major player in the global footwear market.

*Current Landscape of the Indian Footwear Industry*

India stands as the world’s second-largest footwear producer, behind China, accounting for approximately 13% of global production. The country’s production volume reaches around 2,209 million units annually, which is substantial though still significantly less than China’s 14,200 million units.

*Market Share and Export Data:*

* *Production*: India produces 2,209 million units of footwear, placing it second globally after China.
* *Exports*: India holds a 2.2% share of global footwear exports, ranking as the ninth-largest exporter. Exports have seen growth, increasing from $1.9 billion in FY21 to $2.5 billion in FY24.
* *Market Composition*: Casual footwear is dominant in the market, representing about two-thirds of the total retail market. Men’s footwear accounts for 58% of the market, with non-leather footwear holding a 56% share.

*Challenges and Issues*

Despite its growth, the industry faces several challenges:

1. *Unorganised Sector*: Approximately 70% of the footwear industry is unorganised, leading to issues in quality control, branding, and overall industry cohesion.

2. *Counterfeit Products*: The proliferation of counterfeit products impacts brand reputation and consumer trust.

3. *Shrinking Margins*: Intense competition and low margins pressure profitability.

4. *Inventory Management*: Complex inventory management remains a significant hurdle.

5. *International Competition*: Competition from low-cost markets like China, which supplies 38.2% of India’s total footwear imports, creates pressure on domestic producers.

*Key Drivers of Growth*

Several factors are fueling growth in the Indian footwear industry:

1. *Urbanisation*: Increasing urbanization drives higher demand for diverse footwear options.

2. *Rising Demand for Premium Footwear*: Higher incomes and changing consumer preferences are shifting demand towards premium products. The premium segment’s market share is anticipated to grow from 47% in FY21 to 49% by FY25.

3. *Population Growth*: India’s population is expected to reach around 1.5 billion by 2030, further boosting demand for footwear.

4. *Technological Advancements*: Innovations in manufacturing and design improve product quality and efficiency.

*Government Initiatives*

The Indian government has implemented several initiatives to support the footwear industry:

1. *Make in India Campaign*: Aims to boost domestic manufacturing and establish India as a global manufacturing hub.

2. *Export Promotion Schemes*: Under the Foreign Trade Policy 2023, initiatives such as the Market Access Initiative (MAI) Scheme, Trade Infrastructure for Export Scheme (TIES), and the Interest Equalisation Scheme (IES) support the industry’s growth and competitiveness.

*Investment Opportunities*

The Indian footwear industry presents numerous investment opportunities:

1. *Relaxo Footwear Limited*: India’s largest footwear manufacturer by volume, with over 350 stores. Known for its innovation and extensive in-house manufacturing.

2. *Bata India Limited*: A long-established player in the industry, Bata has embraced digitalization and e-commerce to expand its reach.

3. *Liberty Shoes Limited*: Renowned for its high-quality products, Liberty Shoes achieved a turnover of Rs 656 crores in 2023 and continues to innovate.

*Future Outlook*

The Indian footwear market, valued at $26 billion currently, is projected to grow to $90 billion by 2030. According to 1lattice, the market could reach Rs 190.9 thousand crores by FY28, with a CAGR of 11% between FY25 and FY28. The future looks promising with:

* Population Growth*: Increased population will drive footwear demand.
* Changing Preferences*: Millennials and Gen Z focusing on comfort and fashion create new market opportunities.

*Conclusion*

The Indian footwear industry is poised for significant growth, driven by domestic consumption, rising incomes, and supportive government policies. Despite challenges, the sector’s robust fundamentals and evolving market dynamics present attractive opportunities for investment and expansion.

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Bullet Train China vs Bharat

> Potential Growth Ahead

🔴 In China

China’s first bullet train, the CRH (China Railway High-speed) train, began operation on April 18, 2007. This marked a significant milestone in China’s transportation history and was a major step in the development of the country’s high-speed rail network.

The initial service was on the line between Beijing and Tianjin, covering a distance of about 117 kilometers (73 miles). The CRH trains could reach speeds of up to 350 km/h (217 mph), showcasing China’s advancements in high-speed rail technology. Since then, China’s high-speed rail network has expanded rapidly, becoming one of the largest and most advanced in the world.

As of 2024, China operates over 3,800 high-speed trains, including both CRH (China Railway High-speed) and CR (China Railway) series. These trains are used across the extensive high-speed rail network that covers more than 42,000 kilometers (about 26,000 miles). This fleet includes various models, such as the CRH380A, CRH380B, and the newer CR series trains, which are designed to accommodate the high-speed travel requirements and varying regional needs across China.

🟢 In Bharat :

As of 2024, India does not yet have a high-speed rail network on the scale of China’s, but it is developing its first high-speed train service. The most notable project is the Mumbai-Ahmedabad High-Speed Rail Corridor, also known as the Bullet Train Project, which is being implemented with the help of Japan’s Shinkansen technology.

The construction of this corridor, which is expected to cover around 508 kilometers (316 miles), is ongoing, with the goal of introducing high-speed trains capable of reaching speeds up to 320 km/h (199 mph). The project aims to commence operations in the next few years, potentially around 2026-2027.

In addition to this, India is planning several more high-speed rail projects to expand its network, but none are yet operational as of 2024.

As of 2024, India’s total railway network spans approximately 68,000 kilometers (about 42,000 miles). This extensive network includes both broad-gauge and narrow-gauge lines, covering various regions across the country. The Indian Railways network is one of the largest in the world and serves as a crucial component of India’s transportation infrastructure, handling millions of passengers and a substantial volume of freight annually.

As of 2024, India has introduced a total of 22 Vande Bharat Express trains. The Vande Bharat Express is a series of high-speed trains designed and manufactured in India, offering enhanced comfort and faster travel times compared to conventional trains. These trains are part of India’s efforts to modernize its rail infrastructure and provide improved passenger experiences on key routes across the country.

The Vande Bharat Express trains are equipped with features such as automatic doors, onboard Wi-Fi, and advanced safety systems. The network of Vande Bharat trains is expected to expand further in the coming years as additional trains and routes are developed.

India’s railway authorities have ambitious plans for the Vande Bharat Express trains. The target is to introduce around 400 Vande Bharat trains over the next several years. This expansion is part of a broader initiative to modernize the Indian Railways network, with the aim of enhancing passenger comfort, speed, and efficiency.

The projected rollout includes new routes connecting various major cities and regions, improving connectivity and reducing travel times across the country. The exact timeline for achieving this goal may vary based on production schedules, infrastructure development, and other logistical considerations.

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Kotak Mahindra Bank Ltd.

CMP 1,790

> YoY Net Profit Market Rate Oct
2024 13,781.58 1800
2023 10,939.30 1770
2022 8,572.69 1900
2021 6,964.84 1740
2020 5,947.18 1400

▶️ Market Cap : ₹3,50,684 Cr.
▶️ Stock P/E : 16.30
▶️ ROCE : 14.06 %
▶️ ROE : 15.88 %
▶️ Profit YoY 3Yrs : 30+ %
▶️ Sales growth 3Years : 23.15 %
▶️ Net Profit Margin : 30 %

▶️ Growth Potential YoY : 25 %

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DMART

Current Price ₹5303.45

About :
Avenue Supermarts Limited, known as D-Mart, is a prominent Mumbai-based supermarket chain established in 2002. It is a leading and profitable Food and Grocery retailer in India, offering a diverse range of products across various categories. With a focus on efficient supply chain management and strategic store locations, the company targets residential areas with a mix of consumer demographics. Operating on an ownership model, Avenue Supermarts prioritizes long-term lease arrangements for its stores and has established distribution and packing centers to bolster its retail network.

> YoY Net Profit Market Rate Oct
2024 2,694.92 5,300
2023 2,556.40 3,800
2022 1,616.17 4,400
2021 1,165.31 4,000
2020 1,349.89 2,200

▶️ Market Cap : ₹3,45,386 Cr.
▶️ Stock P/E : 130
▶️ ROCE : 18.34 %
▶️ ROE : 13.56 %
▶️ Profit Var 3Yrs : 36 %
▶️ Sales growth 3Years : 18 %

Growth Potential YoY : 18 %

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Gillette India Ltd.

Current Price : ₹ 9,036.05

About :
Gillette India Limited is a public company domiciled in India and is incorporated under the provisions of the Companies Act, 1956. The company is engaged in manufacturing and selling of branded packaged fast moving consumer goods in the grooming and oral care businesses. The company’s products are sold through retail operations including mass merchandisers, grocery stores, membership club stores, drug stores, department stores and high frequency stores.

▶️ Market Cap : ₹ 29,435 Cr.
▶️ Current Price : ₹ 9,036.05
▶️ Stock P/E : 71
▶️ ROCE : 45.58 %
▶️ ROE : 35.97 %
▶️ Profit Var 3Yrs : 27 %
▶️ Sales growth 3Years : 9 %

✅ Total Shares holder : 57,000

▶️ Dividend Declared (₹)

> EX Date Amount (₹)
08 Feb 2024 45.0000
08 Feb 2024 40.0000
21 Nov 2023 50.0000
09 Feb 2023 35.0000
10 Nov 2022 36.0000

> Growth Potential : 35%

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