Indian Equity Research and Investment Strategy
2 days ago the RBI cut the CRR by 25bps leaving the policy rates (repo / reverse repo) unchanged at 8.0/7.0%, respectively. The Chart on your Left shows 25bps CRR cut impact on Banks.
Most banks have already cut rates across products by +25-75bps (home, auto, SME), while leaving key “Base Rates” unchanged. Analysts expect banks (more…)
Finally, the Manmohan Singh Government has taken a strong decision to hike the Fuel Prices, especially Diesel where State Oil Marketing Companies had been losing heavily. Effective Midnight, the following measures come into force,
That’s the difference the (more…)
Infosys is acquiring acquire Lodestone for an EV of US$350mn in cash, payable in two tranches – USD 250Mn upfront and the rest after 3 years, subject to certain conditions. Lodestone is a Swiss SAP consulting firm with US$ 217mn revenues in 2011 with 83% coming from Europe (50% in Switzerland, 23% in Germany).
Lodestone advises clients on strategy and process optimization and provides business transformation solutions enabled by SAP. Lodestone has more than 200 clients across industries with a vertical mix of 28% revenues from life sciences, 17% from (more…)
The latest ECB decision on buying bonds cannot change the fundamentals of global economies overnight. Markets could benefit in the near term if we get a rally globally, however, we are skeptical on the sustainability of any sharp rally especially if we get a rise in global commodity prices. In fact, we are worried it could hurt India’s already fragile economy.
With the Government unable to move an inch due to political compulsions, India will likely overshoot the Budget target of 5.1%. With the Government struggling to hike diesel prices, an increase in oil prices globally could (more…)
Motherson Sumi a JV of Sehgal family and Sumitomo Wiring Systems has gone from being a wiring harness manufacturer to a broad based auto parts major.
Motherson’s acquisition of Visiocorp in 2009 has helped deliver a step change in scale. The 2011 acquisition of Peguform presents a larger challenge with a higher capital outlay straining the balance sheet. However, the Euro1.6bn revenue base of the business creates headroom for profit growth (more…)
Bajaj Finance (earlier called Bajaj Auto Finance) started operations 25 years ago as a captive unit of Bajaj Auto, a promoter-owned two-wheeler manufacturer with 20% market share in the domestic two wheeler market (as of FY12). In August 2007, post a demerger from Bajaj Auto, Bajaj Finserv became the parent company of Bajaj Finance.
The company has focused on improving profitability consolidating the distribution franchise – rationalizing locations as well as dealer network, Realigning and diversifying products and customer segments; and Reducing risks by strengthening processes and systems and hiring / investing in key personnel.
Strong growth in disbursement and advances of (more…)