2. Collective Expertise of 2007
! In 2007 we thought:
! “Only roads will be built – No car will run on it”
! “Power & Energy is the essentials of life - Medicine
& FMCG are not going to be consumed much”
! “Construction will happen but no consumer durable
will be sold”
Monday, 8 October 12
4. Collective expertise of 2012
In 2012 collective opinion is
! Only cars will be sold but no road will be built.
! Only FMCG / Medicines are important for lives, Power & Energy
(oil & gas) are not essential.
! Consumer appliances is necessity but Construction will not be
required.
Monday, 8 October 12
5. Performance of Mutual fund Themes
in this period
ICICI Pru FMCG
&
ICICI Pru Infrastructure Fund
* Above mentioned schemes are for
illustrative purpose.
Monday, 8 October 12
6. FMCG
UP by 99%
Infra
Down by -28%
Monday, 8 October 12
7. Today
FMCG is in Fashion
Infrastructure is Outdated
Monday, 8 October 12
8. In fashion & Out dated
When Clothes are in Fashion they become
expensive
&
When outdated they disappear from stores
When Mutual fund themes are in fashion they are
overvalued
&
When Outdated they disappear from
recommendation list & are available cheap
Monday, 8 October 12
9. ICICI Pru Infrastructure Fund
Infrastructure Fund Average P/E (Valuation) : 13
While
Sensex P/E : 17.75
Infrastructure Fund Price/Book Value : 1.96
While
Sensex Price/Book Value : 2.95
Highly Undervalued sector
Infrastructure Fund Divided Yield : 2.10
While
Sensex Dividend Yield : 1.58
Monday, 8 October 12
10. Opportunity
Just Re-rating of Infra P/E (13) from is current
valuation level to Sensex P/E (17.75) will be
return of
36%
Monday, 8 October 12