Day: January 4, 2025

Veteran emerging market investor Mark Mobius on Friday said a weaker rupee will be beneficial for export-oriented companies earning dollar income as they become more competitive. He also sees India as a strong investment opportunity due to its growth, reforms, and the Trump 2.0 administration’s unfavourable stance towards China.

During an interaction with CNBC-TV18, Mobius said, “Those companies that are exporting, let’s say Infosys that exports a lot of software, are going to become more competitive because of the weakening of the rupee.

The Mobius Emerging Markets Fund’s founder added that many of the stocks in India that have a US dollar income component will continue to do good.

The rupee depreciation is likely to continue due to the strength in the dollar and India’s wider trade deficit, with the currency likely to hit 86 by the end of this year, as per estimates.

Stating that he continues to be optimistic about India, Mobius said, “The Trump 2.0 administration will not favour the Chinese market and if you look at the global picture, where else can investors go?… India comes up all the time because of the incredible growth of the country, because of the reforms that are taking place under the current government, and so much of value in the market including companies with very high return on capital.”

He also expects that President-elect Donald Trump will be cutting down on a lot of paper work for doing business in America. “This will be very good for foreign companies as well,” said Mobius, adding that the country will benefit as it is the ‘natural choice’ for manufacturing after China, and given the extent of reforms that are currently taking place in India.

“My personal desire is to be 50 per cent invested in India,” said the 88-year old emerging market veteran.

In the consumption space also, Mobius said he would look at export-oriented companies, given the currency situation and India’s gradually increasing competitiveness against Chinese exporters.

He also advised investors to consider consumption-focused industries, such as housing and FMCG, as viable investments, given the steady rise in India’s per capita income.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Hindustan Unilever (HUL) is in advanced talks to acquire direct-to-consumer (D2C) skincare brand Minimalist at a valuation of Rs 3,000 crore, according to a source in the know. 

The brand that came into being in 2020 is known for its ingredient-based skincare products. It had raised funds in its series A from Unilever Ventures, and Sequoia Capital India (now known as Peak XV Partners). 

“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws,” an HUL spokesperson said in an email response on the deal.

According to the source, HUL is expected to ink the deal within the ongoing quarter (Q4FY25) and the intent of the company is to get a majority control of the company. The founders of Minimalist — Rajasthan-based brothers Mohit Yadav and Rahul Yadav — may hold some stake, the source added. 

The deal is expected to be at 8-10 times of the brand’s revenue, which stood at Rs 347.4 crore in FY24, compared to Rs 183.8 crore in FY23. Its profit after tax (PAT) also more than doubled to Rs 10.8 crore in FY24 from Rs 5.2 crore in FY23.

The source added that there is a possibility that the deal could be valued higher than the expected valuation. 

In December 2022, HUL announced its entry into the health & wellbeing space by making public that it had signed agreements to acquire stakes in two companies — Zywie Ventures, which sells plant-based and clean-label consumer wellness products under the brand name OZiva, and Nutritionalab, which houses its products under the brand name Wellbeing Nutrition. 

After its July-September (Q2FY25) earnings, Rohit Jawa, managing director and chief executive officer at HUL, told investors on a conference call: “One of the six big bets in beauty and haircare segment is the light moisturizer category. Today, consumers are looking for more than just basic moisturisation. They want products that offer superior benefits through pleasant, non-sticky sensitive experiences and we expect this category to continue picking up pace in times to come.”

Jawa also told investors that as a result of HUL’s dedicated efforts in e-commerce and beauty.com channels, the maker of Pond’s products continues to gain healthy market shares. “Our focus initiative in organised trade has led us to continue with a double-digit growth trajectory in the September quarter. We remain committed in our efforts as we continue to transform our portfolio speed to shape the evolving aspirations of the country,” he added. 

The beauty and wellbeing category contributes to 21 per cent of HUL’s revenue.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com

Authorities are seizing the assets of Boon Vanasin, a Thailand-based doctor-turned-businessman, who fled the country after allegedly receiving more than 12 billion baht ($350 million) through fake medical projects from several investors.

The charges follow multiple fraud and money laundering complaints since December 2023. Vanasin allegedly told investors that they were investing in five medical projects in Thailand, Laos and Vietnam, none of which existed, reported Bloomberg.

Who is Boon Vanasin?

Boon Vanasin is the 86-year-old founder of Thonburi Healthcare Group. He was born into a family engaged in selling rice and other agricultural goods. Vanasin finished his bachelor’s degree in medicine at Mahidol University. He has a specialisation in gastrointestinal medicine from Johns Hopkins University, US, according to a local Thai media, ThaiPBS report.

He returned to Thailand, started teaching at Mahidol University, and was later appointed as Director.

He established Thonburi Hospital Co Ltd with his colleagues in August 1976 to serve Bangkok residents living on the west side of the Chao Phraya River. At that time, Siriraj Hospital was the only major medical facility in the area.

During the Covid-19 pandemic, Vanasin promised Thonburi Hospital would receive 20 million doses of the Pfizer mRNA vaccine, pushing the stocks up by 13%. However, people did not receive the vaccines. In 2022, Thailand’s Securities and Exchange Commission (SEC) fined Vanasin 2.3 million baht over misleading vaccine claims. The SEC also barred him from serving as a director or executive in a public company for 42 months.

Prior to this, he was also associated with the Alpine Golf Course scandal, a controversial land deal issue that led to the arrest of former Pheu Thai Party leader Yongyuth Wichaidit in 2020.

Vanasin served as chief adviser of Wichaidit from 2011 to 2012 when he was deputy prime minister.

In the current case, Vansin’s wife, Charuvarn Vanasin, and daughter, Nalin Vanasin, who remain in court detention, have denied the allegations of fraud and money laundering. According to them, the signatures on the fake document projects are forged, Bloomberg reported. 

The allegations against Vanasin are being probed by the Department of Special Investigation in Thailand. The authorities have arrested 13 people so far including Vanasin’s wife and daughter. In September, Vanasin fled Thailand, initially to Hong Kong and then to China.

Eqwires Research Analyst

Top-notch SEBI registered research analyst

Best SEBI registered Intraday tips provider

info@eqwires.com

Telegram | Facebook | Instagram

Call: +91 9624421555 / +91 9624461555

www.eqwires.com