Whirlpool (WHIRL IN), Aditya Vision (AVL IN), Electronics Mart India (EMIL IN), Eureka Forbes (EUREKAFO IN) India
Consumer Staples
Iii’s Bharat Connect Flash report provides insights, anecdotes and narratives that they pick up as part of their regular on the ground checks and that could potentially emerge as more significant trends or issues, warranting deeper attention. Highlights from their latest note which focuses on consumer durables include: 1) WHIRL’s offline sales are slowing down due to lack of price parity with online sales, lack of company support and flat consumer sentiment. 2) AVL’s competitive advantage is uncertain, with some stores emphasising lower prices and others focusing on service. 3) EMIL differentiates through a better shopping experience and pricing is not a major issue for growth. 4) EUREKAFO hasn't seen a change in the total cost of ownership (TCO).
Edition: 173
- 10 November, 2023
European & US short ideas
Since Vision pitched their short thesis on Vidrala, Verallia and O-I Glass at our Equity Shorting Conference in mid-Mar the stocks have underperformed the Stoxx600 by ~8%. In the last couple of months they have also initiated 3 new European shorts, 3 new US shorts, and has readied a new $7bn+ European short (trades ~$20m/day and has short interest of <1%) for initiation next week. Please join Vision for a meeting while members of their team are in Paris (Jun 5th-6th), Zurich (Jun 7th) and London (Jun 8th-12th).
In the last 24 months, Vision has closed several shorts including: Allegro, AutoStore, Boohoo, Burlington, Colruyt, De'Longhi, Electrolux, Gerresheimer, H&M, Hargreaves Lansdown, Inditex, New Relic, Nokian Tyres, Peloton, Similarweb, Thule, Trex, TSMC, UiPath and Whirlpool.
Edition: 161
- 26 May, 2023