Equity Research
Which Stocks Will Benefit from Mission – Namami Ganga of NaMo ?November 24, 2014
The River Ganga is considered amongst the holiest rivers in the country with thousands of pilgrims thronging its banks to take a dip. However, the river today holds the infamous distinction of being the fifth most polluted river in the world. The narendra Modi led government has promised to clean up the river and wants to complete the same over the next decade by spending Rs510bn on setting up sewerage plants in 118 towns and villages.
Sewerage treatment opportunity to Clean Ganga
Daily sewerage being generated by 50 cities Read More »
November 21, 2014
Kotak Bank will offer 725 shares for every 1000 shares held in ING Vysya Bank. The swap ratio at current prices implies a valuation of Rs159 bn for ING Vysya Bank (2.1x Sept- 14 BV) and is 2.6% higher than its last closing price. The good part is that Kotak is using its expensive stock currency (4.3x trailing book) to buy an asset at 2xBV. However, lower RoE for ING Vysyawill deplete the RoE for the combined entity and Kotak will have to grow fast to improve RoE over time. The deal will result in 18% dilution for Kotak Bank at current prices.
Kotak Bank will induct one member from ING Vysya Bank on the board of the merged entity. Kotak Bank intends to keep one savings account interest Read More »
Hold Indian Oil, Gas Energy CompaniesOctober 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 Markets / Economy & Macro / Sector Research
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 2.0January 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 News
Comparison of 2003-07 Rally Vs 2013-CurrentJanuary 19, 2015
A comparison of the current stock market rally with that of 2003-07 shows different path of the current rally versus the previous one. Some of the differences we spotted are (1) starting valuations of the two cycles, (2) global macroeconomic environment, (3) domestic economic cycle and investment climate and (4) earnings momentum. The current one will follow its own dynamics but a comparison is useful.
The 2003-07 rally started in the Read More »
How are Bills Passed in Indian Parliament – Lok Sabha / Rajya Sabha ?
January 1, 2015
ou all know with the May-16th Verdict of Lok Sabha being the people’s representation in the Parliament of India with 544 members. However, not everybody knows about how Rajya Sabha is constituted and its importance in running the nation.
The name of the second chamber in the Indian parliament (Rajya Sabha or Council of States) highlights its significance in India’s federal structure of governance. Members of the RS are elected by elected members of the state legislative assemblies 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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