Equity ResearchHold Indian Oil, Gas Energy Companies
October 24, 2014
The BJP Government led by Shri Narendra Modi has taken some bold decisions in the Oil & Gas and Energy sector. Retail diesel price deregulation, providing predictability to improved cash flows of oil marketing companies (OMCs), setting the sector up for better marketing margins and private-sector competition, 2) Two-tier natural gas pricing with 47% rise in price of current production to US$6.19/mmBtu (from 1 Nov 2014 with 6 monthly review) and other incentives for future gas discoveries from the more expensive types of projects and finally, direct cash subsidy transfer to retail LPG consumers by June 2015, further improving OMC cash flows Read More »Indian Private Banks Should Rally Further – BUY
September 22, 2014
The first leg is driven by expectations around better asset quality. As tail risk recedes, stocks move sharply to normalized multiples – that has Read More »SENSEX Valuations at Peak – What Retail Investors Must Do ?
August 19, 2014
India continues to trade at a premium to the region, but given its stronger growth expectations under Narendra Modi (#NamoBullRun), it seems well placed on a PEG basis vs. peers. Most market indicators also indicate valuations FAIRLY PRICED with NIFTY quoting at 7,900. With a firm government in place, we think the implementation of reforms could jumpstart earnings in coming years.
Which Sectors of NIFTY Have Reached Peak Valuation ?
Out analyst has beautifully constructed Read More »
Indian Markets / Economy & Macro / Sector ResearchBlack Money Taxation can Wipe Out India’s Fiscal Deficit
June 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 Banks
April 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 NewsMake in India – Ambitious Move by Narendra Modi
September 26, 2014
Prime Minister Shri Narendra Modi, along with other key ministers, today unveiled the Make in India campaign. Under the campaign the government aims to increase the growth rate in the manufacturing sector in India to 10% y-o-y (-0.1% in FY14) and raise its share to 25% in the overall GDP (around 15%). Key highlights of the campaign are, Read More »
When will Indian PSU Banks Recover their NPA ?
August 25, 2014
The sharp slowdown in economic growth under the Corrupt Congress Regime led by Sonia Gandhi, from a peak of 9% three years ago to about half of that level today has resulted in a 50% jump in Gross NPL ratios in the banking sector, not helped by lending to the weaker segments like agri and SMEs. Also, large corporate exposures have struggled due to extraneous reasons (project delays).
Now the Big Question is – Will NPL recovery = ROA recovery for PSU Banks ? Yes to a Small Extent but not the extent the Indian Stock Market 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 »