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
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
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
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
August 11, 2014
The newly elected most competitive Indian government under #NarendraModi has announced tax pass through
for REITs in the recently presented Union Budget F2015. This should facilitate REIT formation in the months ahead, we believe. We have presented below the highlights of the tax pass through.
Trading of listed REIT units would attract the same levy of STT and would enjoy the same tax benefits with respect to capital gains as equity shares of a company – This should put investments in the units of REITs at par with the stock investments in terms of capital gains tax, we believe Read more