Indigenous Investors Weekly Insights!
Top 3 well curated stories from the stable of Indigenous Investors incase you missed them. These can range from finance to sports, depends on what made the headlines. Stay tuned.
This week we cover the following:
Nestle India makes a bold move
Indigo Airlines - truly the king of our skies
The Secret to Compounding
Our thoughts are with the families of those were victims to the dreaded Pahalgam Terror attack and subsequent attacks from Pakistan’s terror groups.
Dr Vikas Divyakirti and Nitish Rajput are two people whose views really matter to us when it comes to India’s defence or any political turmoil.
They are extremely balanced in their approach and don’t need to be funded by either side of the government. They are a rare breed of people in India and we would urge all of our readers to go through their life’s work with a fine tooth comb.
You will learn a lot more than you would’ve imagined. Such is their contribution.
First, we will being with Dr Vikas Divyakirti’s YouTube video - 1971 India-Pak War to Operation Sindoor (click here)
It’s not just any other video that you can doom scroll.
It’s a 2 hour History masterclass on Wars between India & Pakistan since independence.
Dr Vikas talks about the conditions under which these wars took place, who were our allies and how did we manage it. It’s foolish to compare Indira Gandhi and Narendra Modi’s actions with a single incident. But then our media and society uncles who have more knowledge then Einstein can lecture us for hours on how Pakistan Occupied Kashmir (PoK) can be ours while you are busy watching an IPL match.
When our society uncle’s tend to showcase their knowledge about India’s defence, war, politics or even investments - it’s best to refer a professional immediately.
Nitish Rajput on the other hand came out with verified facts about the Reality Of Pahalgam Terror Attack (click here).
Pakistan is a failed country with extremely high levels of unemployment, lack of education and healthcare facilities to their citizens. In 2025, the country has also imposed an Agriculture Tax to repay its IMF debt.
These are perfect conditions for the leadership of the country to demand a war and hurt the opposite nation. Now, since they cannot go on a war themselves and look like a fool infront of the world, they quietly fund the terror groups whose only objective is to cause damage to India.
Now, India is a powerhouse and an extremely important country for World’s largest brands. Because we are getting incredibly wealthy now.
India is now the 4th largest economy.
At the 10th NITI Aayog Governing Council Meeting in May 2025, NITI Aayog CEO B.V.R. Subrahmanyam publicly announced that India has overtaken Japan to become the world’s fourth-largest economy, with its GDP crossing US $ 4 trillion.
However, this report also exposed some permanently unhappy uncles of our society. They were first to point out the flaws and how it didn’t matter if India overtook Japan.
Surprisingly, these are the very people who tend to honk like crazy while driving, throw litter around, do not keep even their homes clean and then proudly thump their chests that India can never be like Japan. Yeah, right.
Our friend Mr Siddharth Shankaran, who recently visited Japan shared his observations with us.
“Every Japanese takes care of their environment. They don’t push you around in local trains, they don’t talk loudly on streets, they are mindful of their surroundings while driving their cars and most importantly they say Thank You to each other for every little act of kindness. This shows up in their work and their ability to think in decades.”
Now, just take a look at the way we take care of our environment. We literally should be thanking our stars for our economic growth.
Because it’s our top 10% of the population that constitutes 66% of our discretionary spend. And yes, this number is always skewed in every country.
source: Blume India Report, Indigenous Investors Research Desk, Perplexity AI
Now, just think about this in India - Pakistan context.
Approx. 14 crore people in India contribute significantly to out GDP. While the entire population of Pakistan is about 20 crore odd. That’s our power of sheer numbers.
Hence, we should stop this mindless ask for a war of sorts. Leave it to our armed forces, they are extremely capable of retaliating and ensuring our borders are safe.
Our job should be to work very hard, take care of our ecosystem and pay our taxes on time to the Government. Also, hold the Government servants or babus accountable when they cause unnecessary troubles in our lives.
Example - for those of living in Mumbai should seriously ask the BMC people on the sheer need of digging up the entire city. When rains hit unexpectedly, garbage which is supposed to move away from the city and into the ocean was out on streets. We should be holding them accountable for pathetic drainage system facilities.
With that, we at Indigenous Investors thank each and every hard working Indian professional who has taken us to the number 4 spot in GDP rankings.
Let’s keep our spirits high and head down at work and let the magic happen!
Now, let’s look at how the markets performed this week:
source: Indigenous Investors Research Desk
This week we had expiry of F&O contracts. It usually gives an indication of how the market is feeling for the next month.
Banking and Small Cap space has been showing some promise at the moment. However, this can be correlated with the fact that both these indexes have gone through their share of pain in the last 2 years.
Investors and traders are now pointing their guns at these segments.
Story #1: Nestle India makes a bold move (click here)
Maggi, Nescafe and Kitkat - that’s our cheat day in just 3 words.
Most importantly it’s the power of Nestle India boasting a market capitalisation of Rs 2 lakh 32 thousand crores and this has been generated by staying in India for the last 113 years (yes, you read that right). No overnight success here.
They generate a revenue of Rs 20 thousand odd crores and a Profit of roughly Rs 3,500 crores. It directly employs around 8,700+ people and impacts millions of small shops who distribute their products.
A company they teach you at MBA schools. And yet, they have made a decision that has surprised many of us.
In their recent con-call, they took a leaf out of QC giant Blinkit’s playbook and took up a new challenge.
“Blinkit asks us a question saying ‘I deliver in eight minutes, why should you take two days?’... Nestlé puts its hat on it, works... and ensures that at least we get it down to one day and hopefully now we will get it down to a couple of hours.”
—Suresh Narayanan, Chairman and Managing Director
Now, while some of us would be wondering what’s the need for such an odd decision. A closer look at this gives you an idea that the leadership and organisational style is changing.
Nestle India doesn’t wish to be a legacy company of sorts anymore. They want to be out there, nimble enough and ready to dance with the younger generation.
That require guts.
A company that redefined this phase is Reliance Industries when our beloved Mr Mukesh bhai entered the Telecommunications ecosystem and shattered our belief systems.
Who says Elephants can’t dance?
A brief comparison of the company with its peers:
source: Indigenous Investors Research Desk, Perplexity AI
The company’s leadership went on to admit the slowdown in India’s consumption growth and attributed it to high inflation and high input costs of coffee, cocoa, wheat, etc. hurting the ability of India’s middle class to plan out their budgets.
Now India’s middle class consists of around 30 crore+ people as per Blume report and while the lower class which consist of 90 crore+ people tend to consume Nestle India’s products at scale.
Inflationary trends seriously hurts their budgets and they tend to cut down on various things in order to meet their monthly spending.
As inflation slowly cools down, especially on the vegetable price front, we will see some positive commentary from FMCG players coming in soon.
Story #2: Interglobe Aviation - truly the king of our skies (click here)
Indigo airlines holds a 64.1% market share on domestic routes. That’s like every second flight that takes off from every airport is of Indigo airlines.
FY25 - Revenue of the company was up 18% and while the revenue from selling tickets (passenger revenue) was up 15%. More Indians travelled by flights.
This is a welcome structural change.
Indians are now valuing time over money. Seeds of growth!
A brief comparison of the company with its peers:
source: Indigenous Investors Research Desk, Perplexity AI
As a result, the company launched a Business Class section on select 5 domestic routes with 16 aircrafts deployed. We will be seeing a lot more growth in this segment going forward.
The company’s strategy on International routes seem to be working very well.
“Actually, when I joined IndiGo 3 years ago, we had around 25 international destinations and we closed this financial year 2025 with 40 international destinations. And now last week, we've added Fujairah being our 41st international destination. That's nearly 65% growth within a period of less than 3 years.
And we have expanded into newer countries, regions and continents with enhancing connectivity to north and central Asia, to the west with a flight to Nairobi and to the east to Indonesia.
However, when it comes to international travel, India remains highly underserved.
— Peter Elbers, CEO
There were concerns about the company’s performance due to the recent Pahalgam Terror attack to which the management commentary provides a lot of relief.
“The moment that the geopolitical event kind of transpired we've seen a significant amount of cancellation that has also started to happen so between the period of April 22nd till a few days back the cancellation and the booking trends have taken a sharp decline. What we've started to notice is in the last few days at least that has stabilised and has started to uptick.
Now to what extent it's going to bounce back and how quickly is it going to bounce back is something that we are monitoring but at least we from our vantage point we've seen the worst in terms of the peaking of the cancellation.
In May our operations from 11 airports in the northern part of India were suspended for a period of eight days, leading to cancellation of around 170 daily flights.
Our Indigo teams — and especially the teams in the northwest region — rose to the occasion supporting one another and most importantly caring for our customers with empathy.
Operationally, the impact was limited as we continue to operate more than 2,500 daily flights with strong domestic load factors of around 83% on the remainder of the network during that very same period.”
— Peter Elbers, CEO
If we go by the management commentary, things are stabilising and planes are operating on those closed routes.
Whether Kashmir will be able to reach its peak anytime soon? Your guess is as good as ours - we don’t know!
Story #3: The Secret to Compounding (click here)
Honestly, we are huge fans of Ian Cassel. One of the finest micro cap investor we have seen in a long time.
The true secret to compounding whether in investing, business, or life is consistently taking care of today with high standards. Focusing on daily actions, rather than obsessing over future outcomes, is what creates enduring success and meaningful compounding over time.
Here’s a short gist that I’ve made for myself:
High Standards Are Crucial
Be Present, Act Today
Lead by Example
Intention Over Perfection
The Compounding Effect
Don’t get distracted by mediocrity or by longing for future rewards. Focus on doing the right things today. When you take care of today, tomorrow takes care of itself. This is the real secret to compounding in all areas of life.
We recommend you read the article thoroughly!