Equity ResearchOut of The Box Approach Analyst from UBS Downgrade Yes Bank
July 8, 2015
We’d like to commend the remarkable job done by Out of the Box thinking Analysts covering the Finance / Banking vertical at UBS Securities. What they did is instead of completely relying on data provided by companies to them, they went a step ahead and collected 7,000 collateral documents (used to secure loans) filed at Ministry of Corporate Affairs [MCA] which are pertaining to 100 potentially stressed companies covering approximately US$100bn in loans to understand the exposure and lending practices of banks. Then they tested the financial stability of Banks against Read More »Why Citi has set Sensex Target of 33,000 ?
May 29, 2015
After witnessing Record run in benchmark BSE SENSEX of 40% in the last 12 months, the index cooled a little bit on the back of profit tacking by FIIs. Basically, the over leveraged position got unwound after tepid results from the Indian corporates excluding the Private Banks pack which have grown YoY beating the benchmark. However, there is a Silver Lining, the return of Domestic / Retail Investor via Mutual Funds & Insurance products.
The Indian households allocation to direct equity is very modest. India’s insurance Read More »Why are we Accumulating IDFC ?
April 22, 2015
IDFC has informed the exchanges that the shareholders have approved the de-merger of IDFC into IDFC Bank. Each IDFC shareholder will get one share of IDFC Bank. With the shareholder approval in place IDFC is on track to start the banking operations from Oct 1, 2015 as planned. IDFC has already received RBI approval and the effective date of de-merger is likely to be within one and half a months.
IDFC is already complaint with the reserve Read More »
Indian Markets / Economy & Macro / Sector ResearchWhat are Various FIIs Views of Indian Equity in 2015-16 ?
May 29, 2015
There is no doubt that India is in a Structural Multi Year Bull Run. One should not be too much worried about Bull Market Corrections as we have seen it happen 22 times at 10% in the last 10 years. In this backdrop, we’d like to summarize the views of various Foreign Investors who now own 25% of Indian Equity Market while Indians poured all their money in non-productive assets such as Gold & Real Estate.
BOFA Merrill remain positive on the Indian markets over next 6 to 9 months and expect an up-turn in consumption over the next 6 months on Read More »RBI 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 »
Corporate Earnings NewsCredit / Debit Card Penetration Reaches 50% in India
April 20, 2015
In continuing our tradition to source authentic data and present it to you, we have published the breakup of Debit Card and Credit Cards in circulation in India at the end of Dec 2014. It gives me immense pleasure to state that Total Debit & Credit Card Penetration in India has touched a whopping 520 Million / 52 Crore [1 Crore = 10 Mn] at the end of 2014, half the size of Indian population, still less than the 97 crore mobile connections India has.
The Following Chart Shows the Read More »
ITC 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 »
IPO ReviewsSEBI’s Regulation for OFS Against Retail Investors Interest
July 31, 2015
The Securities and Exchange Board of India, SEBI the guardian for Investors across the board in Capital markets in India has devised & designed a severely flawed Offer For Sale [OFS] regulation against the Retail Indian Investors. On the very face of it you will probably think the author of this Article is Insane, but ask yourself how many shares did you get allotted in the recently concluded Power Finance Corporation OFS by the Government of India ?
The Govt of India to maximize its returns stopped announcing the OFS in advance as speculators would drive down the prices and also make a killing by virtue of Read More »
Wonderla 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 »
Mutual Funds in IndiaRetail Indian Investors Back to Share Market via Mutual Funds
July 14, 2015
Increased participation of retail investors through Mutual Funds [MF] rather than direct equity purchases is an encouraging development as it is the Fund Managers job to manage your Hard Earned money at a cost of say around 2% which is worth it. Didn’t we Read More »DSB 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 »