Have you observed Pet industry stocks and have you been observed that the number of pets have been significantly increased in our streets over the last 5 years, which is showing the tremendous growth in the pet industry,
As well we can identify a multibagger opportunity in the pet industry stocks but not immediately as it’s a long term opportunity. We’ll discuss the complete scenario such as stocks we can play and key growth drivers along with other important statistics.
As there is lot of reasons that are contributing to the tremendous growth of pet industry stocks. The trend started during the time of covid-19 and the same was continuing and other factors are supporting to the growth of pet industry such as urbanization, economical growth and the income standards of the people which is supporting to afford the pets.
After covid as the pet owners not able to spend the time with their pets, there are lot of services to the pets been started such as day care centres, pet fashions, pet shampoos, pet schools, pet trainings and many more along with pet food industry. Also there are so many premium services for the premium dogs of super rich people such as celebrities.
The people are showing interest to learn about pets and their lifestyle, which is encouraging the people to adopt the pets, as HNI and Super HNI count is increasing, the adoption of pets also were increased also the urbanization and pet education are pushing the pets numbers forward in the super fast.
If we look at the some of pet industry statistics, there is tremendous growth as you can see the below pictures of pet population and pet industry. Also we have seen the remarkable traction in the pet industry stocks and the lot of investments and the acquisitions are happening to get benefitted and to participate in the pet industry growh.
If you look at the below pictures the pet population in 2014 is only 12.5 million then by 2023 it went to 31.4 million, which is a fantastic growth. And the pet insustry size in 2020 is only $419 million and expecting to be reach $800 million by 2025, $1932 millions by 2030 which is to be grown by 20% CAGR.
The average cost of premium dogs are starting from 15000 to 40000, also the same is happening with the cats, you can look at the below picture. The pet owners are spending 500 to 5000 rupees per day on per services such as spa, school, training, day care, fashions, food, vaccination, regular check ups and many more which is positive for pet industry stocks.
Based on the pet industry, the lot of mini service sectors born to cater the needs and to meet the gradually increasing demand day by day such as Pet food, Pet fashion, Pet Schools, Pet hospitals, Pet lounges, Pet photography, Pet day care center, Pet skill improvement schools and many more what not. There are many premium services available for loved dogs, cats and other pets in India.
Key growth drivers of pet industry stocks:
1 The urbanization in our country is pushing the industry forward.
2. In India the HNI and Super HNI count is significantly growing.
3. As per capita income growing gradually in our country which can improves the affordability.
4. The pet education and the awareness of pets is increasing in our country.
5. As per the historical data, in the developing nations the pet adoption will be increased, we’ve seen the similar trend in the developed nations.
6. The pattern of pet industry growth is matcing to the western countries historical growth of the pet industry.
7. Mainly the people mindset was changed as neighbors are adopting the pets, why can’t we?, may be with the love on pets or to show their social status by adopting rich pets.
8. The development of pet friendly infrastructure such as pet friendly hotels, resorts, parks & etc.
9. Indian government is also introducing the favorable regulations to push the growth of the pet industry which is positive for pet industry stocks.
The Pet industry stocks are:
As of today following are the key companies that are running in the pet industry, here we are also furnishing the recent acquisitions, new investments and the unlisted companies. So that will get a complete idea of pet industry stocks.
Listed Pet Industry Stocks:
1. NGL Fine Chem Ltd – ₹2000
NGL Fine Chem Ltd is an Indian veterinary API manufacturing company. in simple words NGL is the animal pharmaceutical company. this company has global presence which is very strong at animal pharma. this company’s 88% revenues are coming from Veterinary APIs.
2. Sequent Scientific Ltd – ₹92
Sequent scientific is an well known animal health company, which has the strong presence in 5 continents and across 100 countries. this company is into animal health business as it has the wide range of portfolio.
3. Fredun Pharmaceuticals Ltd – ₹903
Fredun Pharma is also a pharmaceutical company, which has the strong presence in Africa and Middle east. this company manufactures the generic pharmaceuticals.
4. Cosmo First Ltd – ₹717
Cosmo First is not the direct company to play. it has the subsidiary, named Zigly. Zigly is an omnichannel business, which sells pet care products such as food, accessories, toys and fashions initially and then expanded to grooming serives and full fledged veterinary services. this company aggressively increasing their stores across india.
Nestle India invested 120 Cr in Purina, which is unlisted company.
Avanti Feeds Ltd: Avanti Feed Ltd which manufactures the feed for fishes, frawns and buffalos. The company recently filed an exchange filing that the company has formed the subsidiary to manufacture the pet food.
But we have to see keenly that when it’s comes operational and how much percentage it contributes to the company’s revenues and how it’s adds value to the company. So we should wait for few quarters to know the real numbers.
Unlisted pet industry stocks:
1. Himalaya
2.MARS Pet care
3. Pet veda
4. Drools
5.Purina
6. Zolvone
7. Choostix
8. WAHL
9. Wiggles
10. Heads up for tails
Business Opportunity:
As the pet industry is at very early stage, one can setup the business in the pet industry as it’s the local industy and you can grow your business in your town and cities.
Apart from Pet medical and Pet personal care, remaining all are the small scale businesses. So by setting up these kind of businesses in your local town or cities, you can grow yourself.
Conclusion:
We can see substantial growth in the pet industry stocks in further as there is a lot of potential in the industry. Also we may see some IPOs in future as there is good unlisted companies already we mentioned. We would suggest the collective approach which can allow us to invest in multiple stocks would be always better than investing in single stock as like as the way we followed in the textile stocks. Please understand that this analysis is purely for long term and play as discussed.
Note: as we are not SEBI registered, kindly contact your financial advisor before investing into any stock as the views and analysis, we are posting here are our personal.