The bank is well capitalised that should help it embark on growth once the asset quality issues/provision get sorted in the coming quarters.
Then it tried to punch above its weight by eyeing a merger with Shriram Group. The attempt failed, prompting questions about IDFC Bank’s growth path. The decision to merge Capital First with itself was therefore well timed. The premium paid (close to 12.5%) is a small price for salvaging a brand like “IDFC”.
Majority of the end-user industries served by Indian IT companies are performing well. All companies have indicated bigger size of digital projects as clients appear clearer about their digital strategy.
The current market valuation of a 51 percent stake in HPCL stands at roughly Rs 32,000 crore, that too at a time when markets are at an all-time high.
Importantly what is even more lucrative is that retail investors are offered an additional discount of 5% on the offer price of Rs 153.5 per share.
What investors are buying today is a lot of future expectations. If any of these expectations do not materialise, investors will be left with a highly leveraged commodity company having poor return ratios and volatile earnings history.
As the government readies for its last Budget before the 2019 elections, we expect the rural-oriented policies to be the leitmotif.
India is looking to double farmer income by the 2022, a plan which many experts feel is ambitious. Yet, with proper implementation of rural reforms, the target may still be within reach.
Market experts feel that it is only a matter of time before the stock market reacts to the surge in bond yields.
With “election” the buzzword for 2018, discretionary consumption will be in focus. In this context, a core consumption play like Hawkins Cooker (CMP: Rs 3169, M Cap: Rs 1676 crore) merits attention.
Cartels are usually charged with colluding to inflate prices of products and services. Rarely are they accused of trying to deflate something. Also, information technology would be the last sector you would imagine to be part of such a devious arrangement.
Within the textile sector, the trade is now shifting towards the innerwear companies as outerwear companies’ growth and margins have been facing the brunt of competition, with new domestic and international players crowding the market.
Last few days have seen a lot of noise around the inclusion of natural gas under the GST tax regime. With keen interest from oil ministry in support for the proposal, it seems like the next big topic for the GST council meeting.
Yields on 10-year government bonds were around 6.90 percent pre-demonetisation; they have now climbed to 7.20 percent. Many factors are behind the yields to touch an 18 month high
The festival month led to a better performance from the aviation sector.
Intense competition in the snacks industry, elevated valuation and the vagaries of the raw material costs make us wary about listed entities in this space.
The need for a strong resolution mechanism, different from regulation, was necessitated by the 2008 global financial crisis. Since modern financial system is highly interconnected, failure in any one sector can have a domino effect and rattle the system as a whole.
What really matters is the balance of mind and behaviour particularly during times of exuberance in the markets where stocks tend to run ahead of fundamentals. While behavioural fallacies are common in all kind of markets, here are a few that need a serious check in a bull market.
Rural India is likely to remain a focus for the forthcoming Budget with a clear eye on the vote bank. So the populism that started with a loan waiver is likely to be followed up with lot more in the days to come.
Emphasis on volume-driven sales in price-sensitive markets, asset-light expansion, negligible debt on the books, and macro-economic tailwinds are expected to augur well for Sreeleathers in due course.
We stay cautiously positive on the sector like Rallis India and Coromandel Industries. We are convinced with the business model of PI, Dhanuka and UPL and suggest to buy on dips
Indian retail is likely to be characterised by key developments such as a GST-induced transition in favour of organised retailers and co-survival of offline and online players, among others.
While the Q1 FY18 performance was disappointing, performance has improved sharply in the quarter gone by. We derive valuation comfort given the steady track record of profitability and superior return ratios.
The company will be compounding its equity at a very high rate of return rather than distributing the cash back to its shareholders in the form of dividend.
Since the Indian market has a large play on auto ancillaries, we decided to create a portfolio of ancillary companies that are immune to EV disruption and/or beneficiaries of the advent of EV.