Why invest in Coca-Cola from India?

As per Statista’s findings, “Coca-Cola is one of the top companies in the world by market capitalization”. The name is 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 easiest ways to invest in Coca-Cola from India.  

Coca-Cola: One of the leading beverage companies 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?  

Coca-Cola is well known for manufacturing different beverages: 

• Beverage concentrates 
• Syrups 
• Sparkling soft drinks 
• Fruit drinks 
• Water 
• Sports drink 
• Juice 
• Plant-based drinks 
• Tea 

Here is how its product segment contributes to the company’s growth:

Product Segment	Company contribution
Coca Cola	17%
Diet Coke	17%
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’s cash stash of $17 billion accounts for 53% of stakeholder’s equity	Coca Cola’s cash stash of $17 billion accounts for 53% of stakeholder’s 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 8^th 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 the 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.  

3. Dividend 

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 the Invest option in the dashboard  
• You will see Mutual Funds, the 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?