Equity Research
Have You Made Money in Wealth Destroyer ULIPs ?July 30, 2014
Not now but when ULIPs were selling Hot since then we have advised our readers to keep away from Weapon of Wealth Destroyer – Unit Linked Insurance Plans.
Now with the Markets bouncing bank greedy IL-literate financial advisers Read More »
Astra Microwave – Darling of Defence Sector PuntersJuly 8, 2014
Astra Microwave Products Ltd. (AMPL) is engaged in designing and manufacturing of high value added Radio Frequency (RF) and microwave super components and sub-systems finding applications in Defence, Space and Civil communication systems.
According to media reports, the department of industrial policy & promotion (DIPP) has prepared a draft Cabinet note that proposes to allow up to 100% foreign direct investment (FDI) in defence as part of its plan to boost domestic manufacturing activities, markets are hopeful of better days for defence equipment makers. By permitting FDI in the sector it will help in reducing Read More »
Amtek Auto – Set to Play on Indian Automotive UpMoveJune 9, 2014
Amtek Auto is India’s second-largest auto components company, with revenues of INR156bn. It has a global market share of 20% in turbocharger housings and 15% in ring gears. Amtek Group has been very aggressive with capex and acquisitions [Tekfor and Kuepper] in the past — this has not played out as expected by management, due to Corrupt Governance & Policy Paralysis during Sonia Gandhi’s Congress Regime in the key markets of India (57%) and Europe (~37%) led to significant debt build-up. Amtek management is now focused on improving return ratios and generating free cashflows, which should be taken positively by the market.
Amtek is a high-beta play on recovery in Read More »
Indian Markets / Economy & Macro / Sector Research
Black Money Taxation can Wipe Out India’s Fiscal DeficitJune 4, 2014
The White Paper on Black Money[Non Tax Paid] in India makes for very good background reading on various ways of generating black money: the paper focuses on black money generated via non-disclosure to public authorities rather than that generated from illegal activities.
How is Black Money Generated in India ?
Eighteen ways of manipulating accounts to Read More »
May 13, 2014
After a productive boom period during 2003-2007 with high growth and moderate inflation, India has been facing a stagflation type environment since 2008 with the Corrupt Congress Government at the helm of affairs, and a persistent slowdown in growth alongside high inflation. The agenda driven politicians in Congress caused (a) a sharp increase in rural wages, (b) a high fiscal deficit, (c) a decline in private investment, and (d) weaker external demand.
Worst Is Behind UsWith the progressive BJP Government all set to be installed within the next few days, expect the Structural Growth Read More »
RBI Favors Gradual Lifting of Gold Import Curbs on Indian BanksApril 10, 2014
The Reserve Bank of India (RBI) has allowed five more banks to import gold to ease the restrictions that have been imposed on the precious yellow metal last year.
The RBI has permitted gold imports by Axis Bank, HDFC Bank, IndusInd Bank, Kotak Mahindra Bank, and Yes Bank.
The 80:20 rule that was imposed on gold last year states that 20% of all gold imports in India have to be re-exported. Under this rule, only Read More »
Corporate Earnings News
NaMo Practiced Clean Industrialization in GujaratJune 25, 2014
As Shri Narendra Modi administration assumes office in Delhi, we analyse the Gujarat model of doing business adopted by the state during his tenure as the Chief Minister. The main focus of our study was on three aspects: Gujarat’s (i) framework for land acquisition and allocation to the industry, (ii) strategy to develop Common Effluent Treatment Plants to support industrial development, especially SMEs, and (iii) efficient water management by river integration.
Land Acquisition: Gujarat has tackled several pain Read More »
India Financial Sector to Benefit from Economic Growth
June 4, 2014
India is all set to become a $5Trillion Dollar Economy in GDP terms by 2025. Backtracking the numbers, Financial services will be a big beneficiary – of this growth. According to Morgan Stanley, for this GDP growth to be achieved, the financial services sector will need to grow in the high teens over the decade.
The last three years have not been kind to the India Financials. The persistent economic slowdown and high interest rates caused default levels to rise Read More »
IPO Reviews
Wonderla Holidays – IPO Review / RecommendationApril 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 India
DSB 10 Year MoM Rolling IRR for HDFC Mutual FundsJune 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 messageNovember 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 »
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