Look around yourself, kids, parents, friends, colleagues, etc all seem to be engaged on their smart phones watching videos, checking mails, sending pictures and consuming data in one form or the other.
As per one of the articles in ET, in Sep’16 there were less than 200 million mobile internet users who, on average, used less than 500 MB of data a month. Cut to November 2017: there were close to 350 million mobile internet subscribers, using an average of 4 GB of data per month. That’s almost a 13x increase in 14 months.
This surge in data consumption is expected to continue and as per industry estimates, may reach 11GB per month by 2020.
Considering the burgeoning data consumption and looking at the various listed players, we have released our new investment idea (for all our premium Alpha/Alpha + members) which capitalizes on the very addictive data consumption trend.
Don’t miss out on 2 New opportunities: 1 new long term investment report and 1 Special Situation opportunity:
- A niche company ready to capitalize on the burgeoning data consumption trend
- A special situation opportunity with very low downside risk
In case you missed out on several high quality and high yielding stocks of the past, you can get your hands on Latest stock pick and make the most of it by subscribing to either of Alpha or Alpha + before 15th February.
What we like about the company is that it is easy to understand, has very strong industry tailwinds, adaptive promoters leading the charge and reasonable valuations.
Few important points about the latest Stock Investment idea
Company already derives significant revenue from new data consumption trend and is well placed to maintain the strong growth momentum.
The sector in which the company operates is itself expected to grow at around 20% over the foreseeable future.
While the sector is yet to take off in a big way, company’s performance for the last few years has been good with ~20% CAGR in sales and profitability. If the two factors play out, as discussed in our report, the growth rate for the next few years, especially in terms of profitability, can be huge.
The promoters have been adaptive and have been at the forefront of transforming the business with changing times.
Considering the huge growth potential, we believe the company is trading at attractive valuations of mid-teens pre-tax earnings.
Disclaimer: This is not an investment advice. The performance data quoted at www.katalystwealth.com represents past performance and does not guarantee future results.