As we all know that Annual Reports (ARs) can help us a lot to analyze any company. This is a communication bridge between investors and the management of companies. ARs provide us details such as business, past performance, management comments on performance, outlook, challenges, opportunities, industry information, financial position, financial statements with notes, etc.
Annual Reports review is a review provided by me, comments, and highlights on the important part to focus on. This will help investors with saving lots of their time as well as can get one other perspective. It also can be helpful to investors for generating investment ideas.
All information provided by me is just for an educational purpose and not any BUY/SELL/HOLD advice.
Whirlpool entered into the Indian market in late 1980s as a part of global expansion by forming a joint venture with TVS group. Whirlpool acquired Kelvinator India Ltd in year 1995 and entered into refrigerator segment. Company has merged Kelvinator and TVS Whirlpool in 1996, which has expanded product portfolio in India to washing machines, refrigerator, microwave ovens, air conditioners, water purifiers, deep freezers, coffee grinders, dish washers and a premium range of frost-free refrigerators. It owns 3 Manufacturing Plants (Faridabad, Pune, and Puducherry).
Sheela Foam Ltd is a leading player in India’s mattress and foam products industry. Founded in 1971, the Company enjoys strong brand awareness and a nationwide presence in manufacturing of mattresses, home comfort products and technical grades of PU foam. The Company also enjoys a significant presence overseas, with its products being exported to over 20 countries worldwide.
Mr.Warren Buffett has explained on the commodity to brand-
One of the plastic product manufacturing company which use crude oil & it’s derivatives as a raw material but due to selling a brand company can increase a profit higher than growth to the sales
One of the footwear manufacturing company which use rubber, plastic I.e. crude oil derivatives as a raw material but due to selling a brand company can increase a profit higher than growth to the sales
Mr.Buffett on investing-
When we make a compromise with our need and make an investment of those savings to the proper assets, we can able to receive more purchasing power in the future. We need to majorly focus on the beating inflation for the longer period of time which will provide us a more purchasing power in the future. Our minimum target to earn a return from our investment should be inflation rate + GDP growth rate. This is an appropriate return which will provide us a more purchasing power in future and also build us wealthier. During the current scenario in India, inflation rate 3.77% + GDP growth rate 8.20% = 11.97%, it should be a minimum threshold return from the investment we make.
If we look at the 10 years average inflation rate and GDP growth rate in India then it is 7.71% and 7.17% respectively. So that if we have made an investment in the year 2007-2008 than we should have minimum threshold return of 14.88%. and for the last 20 years is 14.60%.
Warren Buffett’s Letter 2012
Mr.Buffett on intrinsic value creation –
Mr.Buffett on capital-intensive business –
We can use a similar parameter for analyzing a capital-intensive business. Here, we can check that whether the company has higher interest coverage after paying current year interest cost or not. This parameter indicates that the company can pay comfortably interest cost on additional borrowing or not. Such quality will not easily available with all the capital-intensive companies so that we can able to filter out good company from the capital-intensive business segment.
One of the FMCG Company which is the manufacturing and marketing of household products and personal care products