BUSINESS
US political uncertainty can potentially thaw in fund outflows from emerging markets
Upcoming US midterm election could potentially halt the rally in USD and reverse the flows from US markets to relatively better-placed EMs like India
BUSINESS
Ideas for Profit: Bandhan Bank posts strong Q2 performance; buy on dips
Though we don’t foresee any big challenge to the bank’s regular pace of growth, the regulatory requirement of paring down promoter holding can remain an overhang on the stock
BUSINESS
Large liquid fund outflows not as worrisome as posed by headline numbers
There was a domino effect of IL&FS episode on liquid fund withdrawals, but only to a limited extent. A large chunk of outflows can be attributed to September-end phenomenon.
BUSINESS
Ideas for Profit: 2 NBFCs worth looking at in the recent market carnage
We have identified two NBFCs - L&T Finance Holdings and IndoStar Capital Finance - as good long term bets at the current market price
BUSINESS
ICICI Bank: Leadership crisis over, valuation attractive at this price
Chanda Kochhar's permanent exit decisively lifts the cloud of management uncertainty at ICICI Bank
BUSINESS
RBI’s Bandhan Bank diktat: Here’s what investors need to know
In essence, the high promoter holding in Bandhan Bank is an optical illusion. It is actually widely spread out but entangled. To this extent, RBI's action seems too stringent but sets a strong precedent
BUSINESS
Will the risk aversion of MFs derail high speed growth of NBFCs?
While valuations of many NBFCs have fallen following the recent sell-off, we don’t see a quick bounce back as MFs are in a risk averse mode, which will pare growth for many players
BUSINESS
Aavas Financiers IPO: Superior affordable housing play at reasonable valuations; Subscribe
With diversified funding mix and positive asset liability gap, Aavas Financiers is relatively well placed in current environment of heightened funding concerns.
BUSINESS
NBFCs may face funding pressure but most will be able to tide over the crunch
Source and cost of funding are vital for NBFCs. While the cost is going up, there seems to be some pressure on source of funds at the moment.
BUSINESS
SEBI cap on MF fee income will have a widespread impact, and not just on AMCs
SEBI reducing MF charges will hurt wealth managers that largely rely on MF distribution revenue. AMCs are relatively better placed with multiple options to limit the adverse impact
BUSINESS
Sundaram Finance: A steady performer, buy
Sundaram Finance is a safe bet considering its long demonstrated track record of stable and profitable growth across business and interest rate cycles
BUSINESS
Ideas for Profit | Tamil Nadu Newsprint and Papers: Another worthy pick in paper sector
Macro factors such as favourable demand – supply dynamics along with micro factors like margin improvement to aid TNPL’s future profitability.
BUSINESS
PVR: Strong comeback but not yet picture perfect; buy on dips
While online streaming providers like Netflix and Amazon can change the way patrons watch the movies over a period of time, we don’t see a complete disruption to the theatre operators as both mediums can coexist.
BUSINESS
Ideas for Profit: Here are 2 housing finance picks post Q1 earnings
We see a challenging time ahead for housing finance companies, amid rising rates and competition, and remain extremely selective; Buy HDFC and Indiabulls Housing Finance
BUSINESS
Motilal Oswal Financial Services: Q1 earnings a blip; accumulate for the long term
Despite having infused Rs 650 crore as capital so far, the current performance of the housing finance subsidiary continues to be weak with non-meaningful contribution to the group
BUSINESS
HDB Financial Services can be a big value creator; buy HDFC Bank
Superior performance is not limited to just HDFC Bank as a lot of value is being created by its subsidiary – HDB Financial Services
BUSINESS
SC third party motor insurance ruling: Here’s how it impacts general insurance companies
General insurance companies can see higher premium growth due to long term third party motor insurance policies but profitability still uncertain
BUSINESS
Ideas for Profit: HDFC AMC a long term compounder, buy on dips
Following its strong price performance since listing, valuations are definitely rich. Given HDFC AMC's best-in-class return ratios, we see premium valuations sustaining and expect the stock to be a long term compounder
BUSINESS
Paper cos continue to script record profitability in Q1; prefer JK Paper to TNPL
Going forward, integrated player like JK Paper with access to all major inputs and ability to increase capacity will be able to sustain and improve margin
BUSINESS
JK Paper: Well positioned in a sector on an upturn
Macro factors such as favourable demand – supply dynamics along with micro factors like increased capacity and operating efficiency will continue to aid JK Paper’s profitability
BUSINESS
SBI Q1 review: Asset quality woes receding; a long-term buy
The bank didn’t avail of RBI’s dispensation with regard to spreading of MTM loss over four quarters and instead took the full hit in Q1.
BUSINESS
Ideas for Profit: Edelweiss Fin Services strong Q1 performance led by credit business; Buy
With diversified business segments and unique growth drivers, the company stands to benefit from increased penetration of financials services
BUSINESS
Ideas for Profit | CreditAccess Grameen IPO: Sound business in a risky sector; subscribe for the long term
CreditAccess Grameen operates right at the heart of rural India providing finance to the unserved masses at the bottom of the socio-economic pyramid making it a unique rural financial services play
BUSINESS
Reliance Nippon AMC Q1: Re-rating in store; attractive buy
While a rightful discount to HDFC AMC is justified, RNAM is trading at a discount to IIFL wealth, which is unwarranted.
