I wrote a post about screening companies for investing about a month ago, and one of the big ideas of that post was to look for products that you use every day in your life, find out the companies behind them, see if they are listed, and finally try to get a sense of whether they are fairly priced or not.
Ashok, Harinee and I had the following comment exchange on that post.
Following up on the idea I went to look for Eureka Forbes first. I couldn’t find any ownership information on their website but I did notice a Shapoorji Pallonji logo on the top right of their site. So I searched for Shapoorji Pallonji and found that they are also a private company and Eureka Forbes is one of their several holding companies. All public companies have an “Investor Relations” link on their website, and any time you don’t see this link – it is safe to assume that this is a private company. A little Googling can confirm this for you as well.
The next name was Kent, and looking at their website, I found that this was a private company as well.
PureIt was next on the list, and one look at their logo tells you this is a HUL company. So, the next question is how big is this business for HUL?
Going through their annual report I found that they don’t report on just the PureIt business but report it as part of their “Other” segment, and here are the relative numbers for each of their segments.
As you can see from the picture above – PureIt must be a very small part of HUL and may well be unprofitable for them. All this research took about 20 minutes for me, and unfortunately in this case Ashok can’t really invest in the trend that he spotted as far as I can see. I couldn’t find any other public companies operating in this space, but if you know of any please do leave a comment.
Being unable to invest in a stock for one reason or the other is the most common outcome when starting to look for an investment, but it doesn’t really matter that much because you only need 8 – 10 stocks in your portfolio anyway, and you will eventually find those 8 – 10 investments.
The process is fun, doesn’t take very long, and it increases your knowledge and awareness of things around you. That being said the point of the follow up was to looking at a stock and then analyze it which hasn’t happened in this post so if you have any ideas for another product or company please leave a comment and I’ll try to cover it.