BUSINESS
Comment | Who’s the next LIC or BoB of the beleaguered PSU banks?
Since there are many problematic banks and few with strong balance sheets, it wouldn’t be a surprise to see banks like Canara Bank and State Bank of India being dragged to the altar to take responsibility of distressed banks.
BUSINESS
Ideas for Profit: Should one avoid or bottom fish asset financing NBFCs?
Sustainability of asset growth can’t be taken for granted. The steep hike in funding cost would impact interest margin as the entire hike may not be passed on to end-customers.
BUSINESS
Comment - The rupee fall is too little to boost exports, but enough to spark rate hikes
One wonders what level of REER would give comfort to the central bank.
BUSINESS
Opinion | Will RBI adopt divergent path in treating corporate governance lapses in private banks?
If the Axis Bank board was shown tough love by the RBI, can the Yes Bank board expect anything different?
BUSINESS
MAS Financial continues its steady showing, buy for returns in the mid-20s
Despite the optically expensive valuation, we recommend stock for its consistency – a strategy that is likely to pay dividend in the long term
BUSINESS
Opinion | LIC's stake increase in IDBI Bank is funds flushed down the drain
By truly privatising the beleaguered lender, the government could have sent a strong signal to the markets of its intention of impart a new lease of life to the ailing sector.
BUSINESS
Zensar Technologies: Optimistic outlook but is it in the price?
While we expect a respectable compounded earnings of 33 percent in the next couple of years, the multiple re-rating in the past one year captures the same
BUSINESS
Safari Ind: Stellar Q1; buy for earnings visibility despite the run-up
Investors should not expect a further multiple re-rating as the same has already played out. However, one should look to accumulate this company for the secular earnings growth in the medium to long term
BUSINESS
Has the time come to look at state-run banks seriously?
We do not expect large scale capitalisation of PSBs ahead of any significant restructuring in that space. In the interim, banks without capital buffer wouldn’t be in a position to grow. Hence, we would stick to relative quality in the PSB universe.
BUSINESS
Sun Pharma Q1 review: All eyes on the speciality business
We continue to like the strong domestic business of Sun and the niche that it is trying to create with speciality in the US.
BUSINESS
Ideas for Profit: Value lurking in Equitas Holdings & Ujjivan Financial Services
With a pan-India presence and relatively high-yielding book, they remain attractive candidates for mergers and acquisitions by relatively larger entities.
BUSINESS
VA Tech Wabag: Lacklustre Q1, no change in management outlook
While we see limited downside, the upside depends entirely on the positive resolution of APGENCO receivable and large order wins.
BUSINESS
M&M: Strong Q1 performance, value investors should accumulate
M&M trades at a steep discount to peer groups. There is headroom to catch up, riding on rural recovery and product innovation. Value investors should accumulate M&M for the long term.
BUSINESS
Persistent Systems: Is it a right bet at this juncture?
We remain optimistic on the Persistent’s growth potential and margin improvement as it has strengthened its digital capabilities and migrated from pure effort-based business to a value-based one (IP driven).
BUSINESS
VIP Q1 review: A stellar quarter and a strong outlook
We expect earnings to grow at a CAGR of 44 percent over the next couple of years and the stock’s performance should mimic the same even in the absence of multiple re-ratings
BUSINESS
COMMENT | Markets cheer RBI's neutral stance, but the devil lies in the global details
While markets have welcomed the neutral stance, a glass half full could equally be seen as one half empty
BUSINESS
RBI Policy – hike or no hike, the trajectory of interest rates is upward
Since the last meeting, inflation dynamics hasn’t overtly improved but development in macro front points to conflicting outlook on future inflation.
BUSINESS
Ideas for Profit: Axis Bank delivers all round improvement in Q1 FY19, buy
We see a profitable journey for this bank and hence recommend buying into the stock as it has potential to re-rate from the current valuation of 1.9 times FY20e book.
BUSINESS
Ideas for Profit: HCL Tech’s deal wins & commentary overshadows soft numbers, buy
The undemanding valuation leaves room for upside should the strategy play out on expected lines
BUSINESS
Karur Vysya Bank Q1 FY19: Corporate bad loan problem over but bank has a new headache
We like the strategic initiatives of the bank and draw comfort from the end of asset quality woes in corporate banking
BUSINESS
Yes Bank Q1 FY19 review: More yes than no
A closer look at the numbers suggests that the bank’s performance was fairly in line, with strong business growth and fee income traction
BUSINESS
L&T Infotech – execution record and bullish business outlook justifies price
We expect earnings growth in the twenties in the next couple of years. The price performance should track earnings traction hereon.
BUSINESS
Should one add or avoid South Indian Bank after a weak Q1?
The undemanding valuation could provide a decent trading upside should asset quality remain stable in forthcoming quarters. We would like to see some more structural improvement in core performance before recommending SIB to long term investors
BUSINESS
Ideas for Profit: Weaker headline masks core strength in Kotak Mahindra Bank, buy on consolidation
In the near term, the stock might consolidate after the recent outperformance, especially if some corporate lenders see asset quality pains abating. Investors should use any consolidation as any opportunity to invest for the long-term
