Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth · BSE:TSIFRG
Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth — Tata Housing Opportunities Fund — Investor Presentation (August 2022)
28 slides from Titanium Hybrid Long-Short Fund Regular Plan Growth Units Regular Plan Growth's investor presentation, August 2022
Slide 1: Tata Housing Opportunities Fund: Where Dreams Come Home
This product is suitable for investors who are seeking*: {An open-ended equity scheme following housing theme) . Long Term Capital Appreciation. An Open-ended equity scheme following housing theme WHERE DREAMS COME HOME * Investors should consult their financial advisors if in doubt about whether th
Slide 2: Housing Sector: The Value Chain
HOUSING SECTOR: THE VALUE CHAIN Cables - Electricals Engineering, Design & Construction Cement & Cement Products Electric Utilities Other Construction Material Material & Construction Iron & Steel Paints Basic Fittings 02 Glass - Consumer Plywood Boards, Laminates Sanitary Ware Consumer Electronics,
Slide 3: Growth of Housing Industry
G R OW T H O F H O U S I N G I N D U S T RY 03
Slide 4: Housing Sector – Why Now?
HOUSING SECTOR – WHY NOW? Higher propensity to buy Wealth effect Income effect • Previously, declining house prices → • Substantial growth in investments in • Some of the biggest employers Potential home buyers sitting on the mutual funds and stock market over are in metropolitan cities → fence the
Slide 5: Media headlines on real estate revival
Home / Business / Economy / Cexpsk Parekh: Reale Deepak Parekh: Real estate heading to best of times According to Parekh, housing markets move in cycles and research suggests that for India, the peak and trough of each housing market cycle typi Is a duration of 6 to 8 years. ing obest of tines Real
Slide 6: Evolution of Housing Sector in India
EVOLUTION OF HOUSING SECTOR IN INDIA In the past the sector was impacted by Excess Inventory, Regulatory changes, NBFC Crisis & Demonetisation. Recovery green shoots have been visible since FY19 500 Demonetisation GST NBFC Crisis Lockdown 450 Swoosh shaped RERA Absorption (Ares in Msf) recovery 400
Slide 7: Housing Demand Drivers
HOUSING DEMAND DRIVERS MACRO MICRO EXTERNAL Affordability, best in two decades Higher Pricing Power with Builders Policy support to the sector • Higher affordability due to muted • Demand higher than supply for • Increase in supply through Urban price appreciation, lower interest 5 years now Housing
Slide 8: Affordability – Best in Two Decades
AFFORDABILITY – BEST IN TWO DECADES Affordability improved due to muted price appreciation, lower interest rates, rising income levels and smaller unit size Improving Affordability MACRO EMI Affordability Index ∶ (Lower the better) Household Income MICRO EXTERNAL Source: Knight Frank, DART 08
Slide 9: Urbanisation to Drive Demand
URBANISATION TO DRIVE DEMAND Urban Population 35% 140 30% 120 25% 100 20% 80 In Cr 15% 60 in mn MACRO 10% 40 Urban population’s share 5% 20 in India increased to 34% 0% 0 in 2019 vs 28% in 2001 1971 1951 1961 1981 1991 2011 2017 2001 2019 MICRO Urbanization (%) Population (RHS) Housing Shortage 3.5
Slide 10: Declining Inventory Gives Pricing Power to Developers
DECLINING INVENTORY GIVES PRICING POWER TO DEVELOPERS Inventory Declining 800 45 700 40 600 35 Inventory in Months 30 500 Area in Msf MACRO 25 400 20 300 15 MICRO 200 10 100 5 EXTERNAL 0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 New Launches Absorption Inventory in mont
Slide 11: Industry Consolidation → More Room for Organised Developers
INDUSTRY CONSOLIDATION → MORE ROOM FOR ORGANISED DEVELOPERS Smaller developers have been finding it tough to adapt to: changes in Changing liquidity crunch regulatory framework customer preferences MACRO No. of Developers City 2011 2019 Difference Mumbai 11 220 197 -10% MICRO Bangalore 345 196 -43%
Slide 12: Top Developers – Improvement Across Parameters
TOP DEVELOPERS – IMPROVEMENT ACROSS PARAMETERS Debt reduced (Rs Cr) - Key Developers (FY20 to FY22) Macrotech 11465.4 Prestige 4807.9 MACRO DLF (Standalone) 2587 Sobha 369 MICRO For Top developers Brigade 977.9 there has been improvement across parameters like net Metrics Large players Small players
Slide 13: Policy Support Providing Tailwinds
POLICY SUPPORT PROVIDING TAILWINDS Urban Housing Scheme – Rs 18,000 Cr Liquidity facilities for NBFCs – Rs 30,000 Cr MACRO Welfare fund for construction workers Supply Side MICRO EXTERNAL Loan restructuring scheme Credit linked subsidy scheme Demand Side Source: Ambit 13
Slide 14: Growth of Allied Industries
G R OW T H O F A L L I E D INDUSTRIES 14
Slide 15: Opportunity Lies in Allied Industries
OPPORTUNITY LIES IN ALLIED INDUTRIES Growth of Housing Sector Higher Demand for components which Growth of Allied Industries along go into constructing a property with Housing Sector Theoretically, allied sectors are expected to perform well when Housing Sector grows, actual performance may be impac
Slide 16: How Different Products Have Behaved Through Real Estate Up-cycles
HOW DIFFERENT PRODUCTS HAVE BEHAVED THROUGH REAL ESTATE UP-CYCLES Largest Cable & Wire Co - Revenue Growth Housing Credit (RBI) 60% 20% 40% 15% 20% 10% 0% These products have their own cycles -20% 5% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Slide 17: Investing in Real Estate Allied Products
INVESTING IN REAL ESTATE ALLIED PRODUCTS BeW HO tteD r IqFuF alE itR yEofNbTusP inReO sseDsUCTS HAVE BEHAVED THROUGH REAL ESTATE UP-CYCLES Median ROE (FY14-22) Median CFO/EBITDA (FY14-22) 30% 100% 25% 80% 20% 60% 15% 10% 40% 5% 20% 0% 0% Largest Largest Pipes Large Largest C&W Largest Ply Largest Re
Slide 18: Investing in Real Estate Allied Products: Lesser Dependence on Micro-markets
INVESTING IN REAL ESTATE ALLIED PRODUCTS Lesser dependence on micro-markets Most real estate players are regional focused, thus being exposed to the dynamics of individual micro-markets. Not all markets may participate in the cycle based on local cycles. Bookings Geo mix: NCR BLR Pune Hyd + Chennai
Slide 19: Larger Opportunity Set - Unorganised to Organised
INVESTING IN REAL ESTATE ALLIED PRODUCTS Larger Opportunity Set - Unorganised to Organised Total Organized Market (%) 30-35% 45-50% 65% 65% 70-75% Rest of the organised market Share of Top 3 to 5 players 28% 26% 38% 50% 45% Ply Tiles Plastic Pipes Paints Cables & Wires Source: Company Data, Bloomber
Slide 20: Presenting Tata Housing Opportunities Fund
PRESENTING {An open-ended equity scheme following housing theme) WHERE DREAMS COME HOME
Slide 21: Industry Coverage of Housing Theme
INDUSTRY COVERAGE OF HOUSING THEME Segment No. of stocks Market Cap Large Cap 27 ~54 Lakhs Mid Cap 34 ~10 Lakhs Small Cap 228 ~6 Lakhs No of stocks: 307 Market cap: Industries Unique to Small Caps ~70 Lakhs (Rs Cr) Glass – Plywood Sanitary Consumer Boards/Laminates Ware Source: BSE, AMFI | Data as o
Slide 22: Benchmark Composition – Flavour of the Portfolio
BENCHMARK COMPOSITION – FLAVOUR OF THE PORTFOLIO Sector Weightage Financial Services 24.86 Nifty Housing Index Consumer Durables 16.47 Construction Materials 15.06 No of stocks: 50 Power 13.19 Weighted Average Market Capitalisation: Construction 10.52 Rs 2,41,018.5 Cr Metals & Mining 10.20 Oil, Gas
Slide 23: Tata Housing Opportunities Fund: Industries Covered
TATA HOUSING OPPORTUNITIES FUND Private Sector Bank Public Sector Bank Sanitary Ware Cables - Electricals Paints Glass - Consumer Electric Utilities Consumer Electronics Cement & Cement Products Iron & Steel Product Engineering Designing & Construction Furniture, Home Furnishing, Flooring LPG/CNG/PN
Slide 24: To Sum It Up
To sum it up….. Tata Housing Opportunities Fund aims to offer a portfolio of businesses that benefits from the real estate cycle; • The fund focuses on businesses that are better quality compared to pure-play real estate companies • These businesses tend to exhibit significantly lower cyclicality co
Slide 25: Fund Details
FUND DETAILS Scheme Name TATA HOUSING OPPORTUNITIES FUND NFO Date NFO Opens: 16th August 2022 | NFO Closes: 29th August 2022 To generate long-term capital appreciation by investing predominantly in equity and equity Investment Objective related instruments of entities engaged in and/or expected to b
Slide 26: Tata Housing Opportunities Fund: Product Suitability
TATA HOUSING OPPORTUNITIES FUND Fund - Tata Housing Benchmark – NIFTY Opportunities Fund Housing Index (TRI) This Product is suitable for investors who are seeking*: • Long Term Capital Appreciation. • An Open ended equity scheme following housing theme * I n ve s t ors sho ul d c ons u l t t he i r
Slide 27: Mutual Fund Investments are subject to market risks
M u t u a l F u n d I n v e s t m e n t s a re s u b j e c t to m a r k e t r i s k s , re a d a l l s c h e m e re l a te d d o c u m e n t s c a re f u l l y
Slide 28: Thank You
THANK YOU Toll Free Number : 022-62827777 | SMS: TMF to 57575 | www.tatamutualfund.com (Mon to Sat 9:00 am to 5:30 pm)
Tata Housing Opportunities Fund — Investor Presentation (August 2022) on 6ix