Why do multinational companies, whose half of the products are outsourced to much smaller manufacturing units still enjoy a higher multiples than many others. Simple answer, they own the brands and hence the pricing power. There are many sectors where brands play an important role. Branded apparel space has seen many tailwinds, right from implementation of GST which removed the tax arbitrage between organized and unorganized players to something which is not heard much on the street, which is China plus one sourcing. Is this industry finally reaching a stage where scale and brands will get desired valuations.
