Conglomerates also hold the ability to deliver disproportionate value
Do not go by the fact that maybe a billion dollars+ or a 20 billion dollar+ empire cannot create value - break it down and you can see exponential outcomes
More often than not you come across conglomerates.
Conglomerates typically operate in multiple businesses and more often than not they are probably not related to each other.
Think Tatas - Salt to Airlines
Reliance - Oil to Luxury Retail
Aditya Birla Group - Aluminium to Financial Services
ITC - Tobacco to Hotels
Bharti - Telecom to Pizza Express
RPSG - Electricity to IPL Team
RPG - Transformers to Tyres
Interglobe - Airlines to Ibis Hotels
I could go on and on but you get the drift.
Now obviously some of them are really large, some are large and some are large beyond imagination.
More often than not you will see there is an inflection happening somewhere.
It could be a:
1 - Management Change
2 - Industry Tailwind
3 - Capacity going on stream
In the larger scheme of things, markets are often not very astute in noticing these changes, but when it does it does not make anyone even stop and pause for a second.
Like take Trent for example. It took them a lot of time to get their unit economics right and they were at ~200 stores.
But when they got their math in order - they hyper-scaled to 1,000 stores. What happened to the stock? 20x
I am looking out for a lot of names like this - somewhere I have a horizon of 5-6 years whereas in some places there are triggers lined up in the next 2-3 years.
Look closely and you will find a lot of names make it to your watchlist.
Again, while Trent was a great example, sometimes things go insanely wrong as well.
People see growth coming in for 1-2-3 years and then extrapolate it to a decade and ascribe any multiple they want to - The result?
Growth slows down, earnings vanish and multiples become much much expensive.
So, to conclude - even in conglomerates, you can find a lot of businesses that are inflecting. Keep an eye out for them and you can find great compounders.
Registrations for Saturday are now closed
We dissect these interesting case studies later this week as we host the biggest webinar of 2025.
(FAQs for the webinar are appended below)
FAQs for the Webinar
The Webinar will be hosted on Zoom - You will get lifetime access to the deck and the recording 48 hours after the session is over
The session will be for 2 hours and you will get an opportunity to ask questions throughout the session
There are
2 options to attend-either Saturday or Sunday, select it from the dropdown in the Razorpay page from Time Slot
Just chose Sunday - 11AM to 1PM
We shall be covering about 45-50 companies and spotlight 9-10 specific case studies like we did in the last session, so be rest assured to understand how to look at multiple sectors and companies from different lens
With that ladies and gentlemen, do register for the second last webinar of 2025 as soon as possible.