𝐓𝐡𝐞 𝐈𝐧𝐯𝐢𝐬𝐢𝐛𝐥𝐞 𝐇𝐚𝐧𝐝

In the dynamic world of cricket, where every boundary hit is cheered for, and every wicket taken is celebrated, lie secret gems for investors – the sponsors. Whether it is the brand that shines across the player’s chest, or a company name that is barely visible, all of them have their own business stories and several are growing at very high CAGRs (Compounded annual growth return).

Have you ever heard of the iconic line ‘It’s time for a CEAT strategic timeout’? While it may annoy you in the middle of a heated match, have you ever thought about investing in a company like Ceat Tyres? In the financial year 2023-2024, CEAT Tyres witnessed a remarkable growth trajectory. Their revenue surged by an impressive 8.65%, while profits soared to an astounding 321.95%. This has proven Ceat to be a company that rewards its shareholders well. Notably, the stock price reflected this success, delivering a remarkable 62% return which is what savvy investors eye for.

Additionally, Angel One, another successful sponsor, reveals a tapestry of financial resilience and potential. The broking business boasted a 54.3% growth in EPS(Earning Per Share) over the last three years while maintaining about 26.4% net margin which is absolutely phenomenal.

Then there’s Delhivery, a logistics company. Their financials paint a picture of steady growth and resilience. Despite the challenges posed by the logistics sector, Delhivery managed to achieve a remarkable 20.3% growth in revenues. Interestingly, they achieved a breakthrough last quarter, reaching profitability – an impressive level in an industry known for its razor-thin margins.

This is not a new occurrence. In the previous years IPL has seen some solid businesses sponsoring from Aman Gupta’s BoAt, to something as basic as a cement manufacturing company such as ACC. In the recent years Tata Sons has replaced Vivo to become the title sponsor by paying ₹670 crore and claimed the rights for 2022 and 2023. Tata Sons has retained the IPL title sponsorship rights from 2024 to 2028 by paying ₹2500 crore,clearly showing the strength of Indian businesses.

However, it is essential to note that not all businesses enjoy the same success. There have been exceptions like VodafoneIdea or even Sahara Star which have made their investors go from hero to zero! Nevertheless, the overwhelming majority of businesses are by large profitable and amazing places to park your money.

A majority of IPL sponsors have proven to be extremely promising with excellent growth projections for the upcoming years. They have proven to be reliable investments, attracting private equities, fund managers, and hedge funds alike. Therefore, IPL can also be seen as a metric for investment ideas rather than just as a carnival of cricket. IPL sponsorship can serve as a valuable metric for investment ideas, provided we measure the risks and make safe investments. So the next time your parents ask you why you waste all this time watching the IPL, just tell them you’re scouting the next big investment opportunity.

(Kindly note this is not to encourage investments it is merely an informational article) 

– Fenil Chamariya,A2 A