Varun Manmohan Kapur
Ever thought of co-relating 'Market Share' with equity returns? Varun Manmohan Kapur, Yes Bank’s former president and currently an independent investor provides light on a simple yet powerful investment idea.
Whether it be debt or equity, in general, the level of risk is lower when investing in bigger companies. This got further exacerbated in the backdrop of the pandemic, smaller companies with their lower levels of resilience and limited sources for raising financing resulted in positive economic outcomes for larger players. Their already high market shares got a further fillip as suppliers, distributors, financiers, customers all resorted to ‘safer’ and ‘trusted’ brands. Apart from growth, this enhanced market share provided a cushion against lock-downs, lowering demand during the pandemic, says Varun Manmohan Kapur.