Category: Breaking Corporate India Earnings News

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 (more…)

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 (more…)

Kotak Bank is in talks with ING Vysya Bank for an acquisition. ING has been selling assets across the Asian region in its effort to shore up its capital base to meet Basel-III norms.

Kotak has been a very conservative banker and has used capital very prudently, in our view. ING would be an ideal target for it, in our view, as there are less culture issues compared to other old private sector banks that have old workforces and considerable productivity and (more…)

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, (more…)

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 (more…)

As Shri Narendra Modi administration assumes office in Delhi, we analyse the Gujarat model of doing business adopted by the state during his tenure as the Chief Minister. The main focus of our study was on three aspects: Gujarat’s (i) framework for land acquisition and allocation to the industry, (ii) strategy to develop Common Effluent Treatment Plants to support industrial development, especially SMEs, and (iii) efficient water management by river integration.

Land Acquisition: Gujarat has tackled several pain (more…)