InvestorQ : Can you give examples of some moat stocks in India?
Dawn Cherian made post

Can you give examples of some moat stocks in India?

Arusha Ray answered.
3 years ago
There are myriad cases of moat stocks in India. Reliance has used its end-to-end integration to create a unique advantage. Similarly, Maruti has created a moat in the consumer auto space by its ability to consistently bring new models into the market and cater to almost every segment. L&T has used its unmatched execution skills as a perfect moat in the capital goods space. Shree Cements uses its low-cost model to produce cement as a major moat to stay profitable in an industry which plagued with losses. SBI has a moat in the form of a network, which is able to leverage across all its businesses like banking, insurance, asset management etc. On a much smaller scale, companies like Shriram Group have created a wide moat with their unmatched distribution and customer interface across India. D-Mart has created a special moat by taking retailing to the mass market with a cost structure that is hard to match.
Finally, remember that there is another aspect of a wide economic moat which has to do with the ability to be ahead of the curve. Amazon was created by being ahead of the market in every business; be it online shopping, Kindles, Cloud or even drones. Similarly, Google has constantly innovated to produce multiple winners including the search engine and the Android platform. Then there are companies like 3M which ensure that each year nearly 25% of their revenues come from products introduced in the last 3 years. Moats are important from a valuation perspective because moat stocks command very fancy valuations in the market and consistently earn ROCE that is more than the cost of capital. That is the crux of Wide Economic Moat Stocks.