Equity ResearchBOFA Merrill Lynch SENSEX Target at 54,000
March 17, 2015
FII Mover and Shaker of Indian Equity market, BOFA Merrill Lynch hosted an investor conference at which ministers in the Narendra Modi Government (Nitin Gadkari and Jayant Sinha), senior bureaucrats and nearly 40 companies participated.
Overweight India – Global Investors are overweight on India. GEM funds are nearly 420 bps overweight India BoFA’s view is that this makes India vulnerable to any near term global correction. India remains the most owned market in GEM by Read More »Which is the Best PSU Bank worth Investment Grade in India ?
March 10, 2015
Weak balance sheet growth and elevated credit costs would keep the profitability of PSU banks subdued. Furthermore, visibility on structural reforms remains poor. Whilst the Government has taken some initiatives, the process appears to be too gradual and it side-steps some of the key objectives of removing the Government’s direct control on PSU banks.
PSU banks’ 3QFY15 results highlighted continued stress on their loan book growth and credit quality. Slowing NII growth (5% YoY) and elevated credit costs (provisions at 1.1% of assets) led to RoA compressing to 0.3% in 3QFY15.
Focus on Structural Reforms
PSU banks, on an average, have lagged their private sector peers significantly over the last decade in terms of profitability and Read More »
February 12, 2015
Larsen & Toubro – L&T reported weak results with standalone revenue growth of 4.2% versus expectations of 7.5%. EBITDA margins contracted YoY to 10.5% from 11.6% in 3Q FY15 ostensibly on job mix and some orders not crossing the margin recognition threshold.
While L&T, in revenue terms, is larger than India’s next six largest construction companies put together, owing to the fragmented market (L&T’s market share Read More »
Indian Markets / Economy & Macro / Sector ResearchRBI Begins to Cut Interest Rate, How Much More ?
January 15, 2015
In an out of monetary policy review decision, the RBI today lowered the key benchmark repo rate by 25bps to 7.75% with immediate effect. Consequently, the reverse repo rate and marginal standing facility rate are also lowered by 25bps to 6.75% and 8.75% respectively. The cash reserve ratio (CRR) stands unchanged at 4%.
In the statement issued Read More »Niti Aayog – India’s Planning Commission 2.0
January 5, 2015
The government of India has revealed the structure of a new think-tank called NITI (National Institution for Transforming India) Aayog (Niti Aayog means Policy Commission in Hindi), which will replace the now dismantled Planning Commission (PC). The key objectives of the new body are as follows,
- Unlike the PC, which focused on five-year plans, NITI Aayog will undertake more ad hoc and long-term policy advisory for the central and state governments.
- The body will foster Read More »
December 9, 2014
In a world struggling for growth, India stands out. Promising medium-term prospects come from an extremely low base, and a stark improvement in state-level governance. Credit Suisse economists project India to see the fastest USD nominal GDP growth in 2015, with the growth gap between India and the rest of the world expanding.
CS Views on Global Linkage, Read More »
Corporate Earnings NewsITC Cigarette Business – End of An Era
March 2, 2015
Unlike the previous Corrupt Regime of Congress, the present BJP Govt is highly determined on preserving the Health of the Nation and took another bold with hawkish stance on cigarettes which saw another double digit excise hike.
The budget has raised excise duty on cigarettes by 12-22% implying a ~14% effective hike for ITC, ahead of our as well as consensus’ estimates. This is fourth consecutive double digit hike and in fact, comes on top of ~20% hike in Jul-14. The budget Read More »
India’s Battlefield Management System Contracts Awarded
February 27, 2015
Action in the defence sector continues to gain momentum. The latest being the Ministry of Defence selecting a consortia of 2 developers to develop Battlefield Management System (BMS) worth INR 500bn. The BMS project is categorised under the Make in India category and will be one of the largest defence solutions to be manufactured indigenously. It is a Read More »
IPO ReviewsWonderla Holidays – IPO Review / Recommendation
April 21, 2014
Wonderla Holidays Ltd (Wonderla), founded in 2002, is one of the largest amusement park operators in India promoted by the same promoters as that of V-Guard Industries Ltd. The company, currently, owns and operates two amusement parks under the brand name ‘Wonderla’. The company also owns and operates a resort besides an amusement park in Bengaluru under the brand name ‘Wonderla Resort’, which has been operational since March 2012.
Wonderla has a proven track record of managing amusement parks with established brand equity. The company has been able to maintain high standards of safety and hygiene, which has been able to attract organized visits from schools, colleges and corporate segment.
Wonderla has developed an in-house Read More »
Subscribe to PowerGrid FPO at Cut-Off
December 4, 2013
PowerGrid Corporation of India’s FPO is an attractive opportunity to own the fast-growing (19% net profit CAGR in FY13-17) near monopoly regulated power utility with stable RoEs (~16% in FY15/16). Whilst 10% equity dilution at Rs90/share was the ideal scenario, the 13% dilution at Rs85 (the lower band of the FPO) would raise enough equity to meet the equity needs up to FY15E/16E capex. The allowed return on equity in 2001-04 and 2004-09 was 16% and 14%, respectively. The CERC increased the regulated RoE to 15.5% + 0.5% incentive for timely completion of the projects.
After aggressive bidding in the initial eight Read More »
Mutual Funds in IndiaDSB 10 Year MoM Rolling IRR for HDFC Mutual Funds
June 10, 2014
This Article is a Must Read for everybody as we introduce a new benchmark of calculating 10 Year SIP Returns -
DalalStreet.Biz [DSB] 10 Year Rolling MoM Internal Rate of Return for Mutual Funds in India
We started off with 5 of the Top Performing Funds which we recommended 11 years ago.
Since we posted just on twitter a year ago about our new methodology of researching mutual funds, I’m sure most of you must have Read More »Madhusudan Kela – Reliance Mutual Fund, CIO’s message
November 15, 2012
We present to you the view of Madhusudhan Kela, Sr. Fund Manager and Chief Investment / strategist Officer with Reliance Capital Asset Management company on the occasion of Diwali.
Once again, as the biggest and the brightest Hindu festival, Diwali, is upon us, it is indeed a time for introspection, celebration of life and its gifts. [Skippng some Paragraphs Related to Religious References..]
Just think, last Dec, investors had started Read More »