Indian Equity Research and Investment Strategy
Kotak Wealth Management has advised all its High Networth Individual [HNIs] Clients to stay fully Invested in Equities as chances of upside Risk are Higher (dependent on the outcome of Lok Sabha Polls where Corporates are Openly Backing BJP led Narendra Modi for country’s premier post, inline with our expectations).
They say that the formation of Progressive BJP led NDA Government is very High. If the election mandate is in BJP’s favor then we (more…)
HDFC Bank is India’s Global private sector bank. We have been BUYERS of the Bank at all levels over the past 12 months. We’d like to justify the top 10 reasons on why HDFC Bank must Trade at a High P/E of 20+ like consumer stock [even though ITC and HUL trade at much higher P/E of 30].
1. The first factor in Equity Analysis which we look at is the Quality of Management. HDFC Banks gets a full 10/10 as it has the best professional management which leads to innovative products being offered.
2. Second Lowest Non Performing Assets in the Indian Banking Industry [due to high quality processes in place] with enviable (more…)
With the underlying Economic indicators showing signs of recovery, a comprehensive analysis of Indian banks’ profitability matrices, suggests that asset quality stress tests and near-term strategies, present three key takeaways: 1) Private banks are well positioned, with the capital and liabilities to benefit from an economic recovery. 2) Lack of capital is a challenge for PSU banks, whose urgent need for equity dilution may keep valuations subdued even as the economy improves. 3) Capital inefficiencies may keep valuations down for PSU banks, whereas valuations could expand for private banks due to better capitalisation.
PSU banks have lost their core (more…)
The declining likelihood of a fractured mandate in the national election 2014 has made the currency stable, and other key indicators like improving macro has lead Deutsche analysts to believe that it may be time to start focusing on domestic recovery/reform plays. It may be too early to expect any sharp economic turnaround, we believe that the worst is over.
With no reversal in the policy on calibrated diesel price hikes – as many had expected – we believe that the regulatory environment for diesel pricing has seen a structural change. Select PSU banks and state-owned oil companies, which witnessed severe (more…)
Fast economic development is critical to ensure employment for the youth and security of the country. India is currently going through one of the worst phases as far as economic development is concerned. High inflation and low growth have led to stagnation in job creation. The social impact of the economic crisis is frightening – as shown by increasing number of suicides and skyrocketing crime graph.
The present economic crisis in India is due to policy paralysis of the Corrupt Congress led UPA government resulting from high level of corruption and lack of vision for the country. (more…)