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Showing posts with the label Insight

Conglomerates: The Break Up Story!

The Synopsis General Electric (GE) announced a few weeks ago that it will break its company into three independent publicly traded entities. The three new businesses will now concentrate on three distinct business lines: aviation, healthcare, and energy. Jet engines will be manufactured by a single business, which will be a behemoth in and of itself. The second will concentrate on healthcare, especially the production of life-saving medical equipment. Finally, the third firm, GE's bread and butter, will continue to light up the power market. These progeny are intended to function independently within a few years, with their own management teams and boards of directors. And, if all goes as planned, one of America's biggest and most valuable public companies will cease to exist as a conglomerate in a few years. But here's the thing: it's a trend that we're seeing all over the place . Johnson & Johnson (JNJ) followed GE's lead and announced its separation only ...

The Asian Paints Price Hike Stroke

This paint business, which was once a stock market favourite, hasn't had a fantastic year. While the Sensex has increased by more than 50%, Asian Paints has only increased by 30%. The Synopsis Asian Paints, the world's largest paint manufacturer, has raised prices by just 3% a year for the past 20 years. That's correct, despite the fact that we've had to cope with out-of-control inflation everywhere, paint costs have never been an issue. The corporation, on the other hand, has finally rolled up its sleeves and is getting down to work. Asian Paints, the industry leader, is raising prices by 7–10 percent starting November 12th. Yes, it's advising everyone to spruce up their homes before Diwali. But, you may wonder, why the abrupt change of heart. Of sure, earnings are important. Sales increased by 32% year over year, from Rs 5,350 crores to almost Rs 7,000 crores, according to the company's latest figures (July-September). However, its net income dropped by 28%, f...