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
July 30, 2014
Not now but when ULIPs were selling Hot since then we have advised our readers to keep away from Weapon of Wealth Destroyer – Unit Linked Insurance Plans.
Now with the Markets bouncing bank greedy IL-literate financial advisers Read more
July 8, 2014
Astra Microwave Products Ltd. (AMPL) is engaged in designing and manufacturing of high value added Radio Frequency (RF) and microwave super components and sub-systems finding applications in Defence, Space and Civil communication systems.
According to media reports, the department of industrial policy & promotion (DIPP) has prepared a draft Cabinet note that proposes to allow up to 100% foreign direct investment (FDI) in defence as part of its plan to boost domestic manufacturing activities, markets are hopeful of better days for defence equipment makers. By permitting FDI in the sector it will help in reducing Read more
June 9, 2014
Amtek Auto is India’s second-largest auto components company, with revenues of INR156bn. It has a global market share of 20% in turbocharger housings and 15% in ring gears. Amtek Group has been very aggressive with capex and acquisitions [Tekfor and Kuepper] in the past — this has not played out as expected by management, due to Corrupt Governance & Policy Paralysis during Sonia Gandhi’s Congress Regime in the key markets of India (57%) and Europe (~37%) led to significant debt build-up. Amtek management is now focused on improving return ratios and generating free cashflows, which should be taken positively by the market.
Amtek is a high-beta play on recovery in Read more