Why invest in coca-cola from India? All you need to know
As per Statista’s findings, “Coca-Cola is one of the top companies in the world by the market capitalization”. The name makes among the leading companies like – Apple, Alphabet, Tesla, and Amazon.
Market capitalization is a critical parameter considered in calculating a company’s worth and the trading opportunities it presents. Coca-Cola is considered one of the biggest companies in the world as per the market value index 2022.
Having such a high market capital ratio and being well-known for its “formula”, Coca-Cola shares opportunities for investors, particularly Indian.
However, many investors find it complicated to seek a way to invest the right way from India. Yes, you can invest in Coca-Cola stock from India. The blog states the best and easy ways to invest in Coca-Cola from India.
Coca-Cola: One of the leading beverages Company in the World
Coca-Cola is a key beverage company in the world. Atlanta, Georgia, is the company’s headquarters. Globally, it has 200 bottling partners.
Coca cola’s net worth as per July 2022 statistics stands at $273.71 billion. There would be hardly any personality in the world who would fail to recognize the iconic letters describing the bottle. It is this aspect that captures the investor’s attention.
To talk about its bottles, have undergone constant evolution since 1886. It is the year that marked the invention of the iconic brand. The taste soon got popular in the UK and the brand became the first to cross the annual £1 grocery sales.
- What does the Coca-Cola market benefit the most from?
- What are the main motivations to invest in Coca-Cola than Pepsi from India?
- Why does warren buffet love coca-cola so much?
- What is the Coca-Cola company’s share price in India in 2022?
- Is it ideal to invest in Coca-Cola from India in 2022?
- How to invest in Coca-Cola from India?
What does the Coca-Cola market benefit the most from?
Coca-Cola is well known for manufacturing different beverages:
- Beverage concentrates
- Sparkling soft drinks
- Fruit drinks
- Sports drink
- Plant-based drinks
Here is how its product segment contributes to the company’s growth:
|Product Segment||Company contribution|
|Coke Zero, Sprite Zero||14%|
|Powerade and other brands||14%|
What are the main motivations to invest in Coca-Cola than Pepsi from India?
Here are some popular reasons to invest in Coca from India in 2022:
|Coca Cola Stock||PepsiCo Stock|
|Coca Cola cash stash of $17 billion accounts for 53% of stakeholder’s equity||Pepsi Co’s $9.5 billion accounts for 43% of stakeholders’ equity.|
|It has a global market share of 8.4%. It shares greater pricing flexibility than Pepsi.co||It has a global market share of 3.6%|
|It has a no.1 market spot globally||PepsiCo has a grand presence|
|It deals only in Beverages||It deals in beverages and snacks|
Why does warren buffet love coca-cola so much?
Ever wondered why Warren Buffet’s Berkshire Hathway owns a 400 million or 9.2% stake in the company?
According to Business Insider’s statistics, Berkshire Hathway invested $1.3 billion investing in Coca-Cola. The price of Coca-Cola stock rose 2% in 2022. It is not it.
Here are other reasons Warren Buffet, the famous Angel investor, relies on Coca-Cola’s future.
- He believed it to be an undervalued brand being the biggest beverage industry dominator
- The company launched fresh brands of juices, sports drinks, coffee, and bottled water in 1988. The annual revenue rose from $8.3 billion in 1988 to $38.7 billion in 2021
- It buys back its stocks (major reason).
- He deems it as a “FOREVER STOCK
Additional read: How to invest in Netflix from India?
What is the Coca-Cola company’s share price in India in 2022?
As of 8th July 2022, the share price of Coca-Cola stands at ₹4.9k.
Is it ideal to invest in Coca-Cola from India in 2022?
Here are some popular reasons to invest in Coca-Cola from India in 2022:
- The stock price of Coca-Cola has risen by 17% from 2021.
- As per economic times, “Cola-Cola is to make “Maaza” a $ 1 billion brand by 2023.”
Undoubtedly, the stock will rise in the upcoming times and subside any US inflation fears.
Additional read: How to invest in Google from India?
How to invest in Coca-Cola from India?
Coca-Cola owns popular brands like- Minute Maid, Fanta, Maaza, and Coke Zero. You can invest in Coca-Cola from India in multiple ways:
1. Direct investment in the US stock
You can invest in Coca-Cola from a brokerage account in India. It is an account that holds financial securities or securities either with a bank, broker or custodian. Investors and traders hold accounts with the respective broker and the bank. They buy and sell stocks through the security account.
- To invest in Coca-Cola from India, you can open up a US brokerage account by choosing from multiple platforms available.
- Or use a foreign brokerage sharing a direct presence in India.
2. Invest through ETF Funds
Another option through which you can invest in Coca-Cola is through ETF funds. An Exchange-Type Fund (ETF) is a pooled investment that works like a mutual fund. It tracks funds under index, commodity, asset, and sector.
It can be purchased and traded similarly to other stocks. ETF holds funds for different industries like- Household products, beverages, staples, food, etc. Some ETFs invest in US indexes. You can invest in Coca from India through ETFs of the US available in India.
4. Coca-Cola Mutual funds In India
It is one of the straightforward methods to invest in US Coca-Cola Stock. In this, you can invest in local mutual funds that share availability in the US.
One can invest in Indian Rupees. There are no restrictions to that. However, there may be a charge to invest in the stock from India. The fee is known as the Expense ratio.
These fees tend to be high. If you are a beginner investor, it might not be an ideal stock for you. It shares potential risks. However, the stock is performing well, but the fee makes investment costlier. Evaluate the risk appetite and invest in an informed manner.
As per the research, Coca-Cola stock is the stock of the “Future”. It certainly holds the potential for an investor to multiply his wealth.
Advantages of investing in Coca-Cola
1. Renowned company
Coca-Cola is one of the world’s largest companies, which sells beverages in at least 200 countries in the world through wholesalers, retailers, and partners.
Coca-Cola has more than 500 beverage brands. Out of the top 5 beverages in the world, four are owned by the soda giant.
2. Can withstand recession
There are so many stocks that do well during the bull market and struggle when a recession hits.
But Coca-Cola is one of the few companies that can withstand recession with minimal loss compared to other companies.
The growing dividends are one of the big advantages of Coca-Cola. Many reports suggest that the company gave out dividends to its shareholders even during the most challenging times.
Disadvantages of investing in Coca-Cola
1. Potential product slide
Though it’s very hard to see a company as big as Coca-Cola lose customers, there has been a slight mindset change amongst people, with many choosing the healthy way.
People are starting to be vocal about staying away from sugary drinks to concentrate on fitness. This could be a minor concern for a potential investor.
2. Expensive stocks
Coca-Cola stocks are expensive. One might think given the brand name and size of the company, the prices are justified, but with recent performances and future expectations of the stock, a few investors could have second thoughts because of its price.
How to invest in Coca-Cola from India?
Though it may sound complicated, it’s quite easy to invest in Coca-Cola from India. The EduFund app allows you to invest in the US market through US ETFs. Follow the instructions to invest in the app:
- Enter the app and click Invest option in the dashboard
- You will see Mutual Funds, US Market and Digital Gold options on the screen
- Click the US Market, and it will show the Top US Stocks option
- Click the View All option, and you will see Coca-Cola fund among the best companies in the world
- Choose Coca-Cola fund and start investing
You can invest in Coca-Cola from India in the above-mentioned ways. Keep a check on market fluctuation, fees, and risks. Are you ready to invest in Coca-Cola?
Why should I invest in Coca-Cola?
Statista states that “Coca-Cola is one of the top companies in the world by market capitalization”. The name makes among the leading companies like – Apple, Alphabet, Tesla, and Amazon. Market capitalization is a critical parameter considered in calculating a company’s worth and the trading opportunities it presents. Coca-Cola is considered one of the biggest companies in the world as per the market value index 2022
Why did Coke pull out of India?
The Indian government demanded Coca-Cola reveal its secret syrup formula, which led Coca-Cola to pull out of the Indian market in 1977. The brand returned to India in 2003.
What was the strategy of Coca-Cola for Indian Market?
Coca-Cola acquired local brands like Thumbs up, Maaza, Limca and others to expand its global branding. Its excellent marketing campaigns, like sponsoring significant cricket tournaments and involving youth celebrities of the country to market the product, were masterstrokes.
Can I invest in Coca-Cola from India?
You can invest in Coca-Cola stocks from India through US ETFs. The EduFund app offers customers the option of investing in Coca-Cola through US ETFs!
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