“Peak” Hero Moto Corp

There was this great article in Forbes about whether Google has hit its peak revenues.The author writes

I’m normally extremely sceptical of arguments about “Peak” stuff. Peak copper, peak oil, peak water, I can usually be relied upon to pooh pooh or rubbish those stories about natural resources running out. However, with corporates and with technological offerings I’m entirely ready to accept such peak arguments. For any company is only ever exploiting a technological niche provided by the current technological environment. And those disappear just as quickly as they arise. So I’m convinced that we will indeed reach peak Google.


Now that leads me to think if there are any Indian companies out there who have hit peak revenues.Lots of companies in the past have been done in by technological changes – Tata Yellow Pages, Moser Baer etc

The interesting question is which company right now is having peak or close to peak revenues and will get done in by technological/regulatory changes.

I feel Hero Moto Corp fits the bill. The separation from Honda has ruptured this companies’ DNA. It is struggling to sell its dated models.In Sept 2012, it sold 4.04 L units of two wheelers as compared to 5.49 last year (a fall of 27%).Bajaj in contrast witnessed a decline of only 12%.

Hero is cash rich and is investing aggressively in R&D to fill the technology gaps in its product line.But the auto business is such that you need a dynamic promoter at the helm who is passionate about the product.Think Ratan Tata,Rajiv Bajaj, Anand Mahindra etc.All of them are involved in the design of every new product.

Fierce competition, technological irrelevance and mediocre management all point to “peak” Hero Moto Corp


Prashant Jain’s thoughts on Investing

Interesting presentation by HDFC’s Prashant Jain (Hattip Pradeep Nalluri)

Interview Video

Video:Jim Rogers Interview

He has two words for you: Agri Commodities


Linkfest: Oct 22, 2012

Some stuff I am reading today morning:

FIIs bullish-hike stake in rally (BS)

Caught in the gold trap (Mint)

After 2 years, Mumbai developers step on gas (BS)

Money can’t buy you parking in Mumbai (MumbaiMirror)

Astral Poly:Management Meet (DalalStreet)

Interesting discussion on online vendors of vegetables(Rodinhoods)

Why traders have been selling the Japanese Yen (SoberLook)

The hedgie’s life goes cold for Coffey (FTAlphaville)

Is it evil to be rich? (DailyReckoning)

Could Google actually disappear in five years? (Climateer)

Mumbai Music

Tirupati Balaji Comes to Mumbai

I had the good fortune to witness the the Kalyana Utsavam (marriage ceremony) of Tirumala Tirupati Sri Balaji with his consorts (Goddess Sridevi and Bhudevi) at Shanmukhananda Hall, King’s Circle.

The celestial wedding is performed daily in the Tirupati temple and devotees throng to be a part of the celebration.Usually, devotees are waitlisted for years when the ceremony is performed at Tirupati.It is for the first time in Mumbai that the idols were brought from Tirupati and the ceremony was performed here.

One of the singers at the function sang Adi Shankaracharya’s Bhaja Govindam.I simply marvel at the genius of this bhajan immortalized by the voice of M S Subbulakshmi