RBI likely to cut rates only in early FY13
The big question is whether RBI would begin reversing its monetary policy by cutting the Cash Reserve Ratio (CRR) in the January 24th Policy?
If Ben Graham bought 'cigar butt' stocks in India
The legendry father of value investing, Benjamin Graham died in 1976, at the age of 82. Unfortunately unlike Buffett he never took any interest in non-US listed stocks during his lifetime.
Can Infosys and TCS become Buffett's babies?
A lot of tributes have come Warren Buffett's way, arguably the world's best investor ever. But the best one we believe will be reserved by Charlie Munger, the business partner of Buffett and a very intelligent man himself. Munger observed that the reason that Buffett is so successful is because he is a lifelong learning machine.
What you need to look out for in a balance sheet
To study any business and its performance, you have to study financial statements including profit and loss statement, balance sheet and cash flow statement.
Austerity, not bailout, solution to EU crisis: Rajesh Tambe
The banking sector in India will take a hit due to the recent decision by Reserve Bank of India to deregulate the savings bank interest rates.
Basics of investing: Are you a speculator or an investor
“To invest successfully over a life time does not require a stratospheric IQ, unusual business insights or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.” Warren Buffett
Flexituff Intl IPO opens: Expert says be cautious
Scale of operations and profitability favour Flexituff though promoters’ stake, poly sacks’ poor discounting, credibility issues, etc. weigh against the hefty offer.
Onelife Capital IPO exorbitantly priced: Analysis
Loss-making Onelife Capital vie Rs 90 to Rs 100 premium for a Rs 10 paid-up share. How a two-year-operational company is allowed to pocket such a huge premium at one stroke?
M and B Switchgears IPO: Analysis by V S Fernando
How can one justify a market cap of Rs 360 crore plus for a company whose aggregate turnover in last five years was only Rs 135 crore? Absurd valuation short-circuits genuine appreciation prospects on M&B Switchgears.
Tijaria Poly IPO: Pricing looks cheap, but not attractive
Notwithstanding encouraging peer group discounting on the trading screen, Tijaria Poly is hampered by adverse raw material prices and depleting rupee which could dent a hole in its profitability in the near term.
Swajas Air Charters IPO: Analysis by VS Fernando
Notwithstanding Global Vectra’s plight (current price Rs 20 as against its IPO price of Rs 185) Swajas Air Charters vie for a price of Rs 90 to Rs 100 discounting its latest earnings 38 to 42 times! How one justifies such a steep pricing especially when the deflating rupee and rising oil seriously threaten profitability?
Crisis to hasten China's rise; will India gain or mess up?
The last three years have turned the world upside down. This is why no one can predict what exactly will happen to the world economy or the markets. Consider the huge changes that the world has only now begun to acknowledge, and that, too, in hushed whispers.
RDB Rasayans IPO: Analysis by V S Fernando
More than a dozen existing listed companies in poly sacks space do not add up to a market cap of Rs 110 crore but that does not deter the sixth public entity of the RDB group from asking a m-cap of Rs 140 crore for a capacity of only 14450 tonnes. No wonder NSE did not find it fit for listing!
Prakash Constrowell IPO a misfit for portfolio: VS Fernando
Notwithstanding intensive Fiscal’s track, excessive dependence on government contracts, risk of geographical concentration, limited scalability of operations, high degree of competition, poor industry-discounting in stock market, etc. make Prakash Constrowell a misfit for portfolio construction.
PG Electroplast IPO: Analysis by V S Fernando
PEL which has not declared any dividend during the last five years is asking a price of not less than Rs 190 for Rs 10 paid-up share. In other words it is asking the investing public to shell out a premium of over Rs 100 cr when the company’s reserves after eight years of operation are worth less than Rs 35 cr.
TD Power IPO aggressively priced: VS Fernando
Having tapped the market during the 1995 unprecedented primary market boom at 100% premium, Chartered Capital threw its dividend promises of 20% in very first year and 60% in fourth year into the wind. BSE records show that the company has not paid any dividend for the past thirteen years!
VS Fernando's view on SRS Ltd IPO
VS Fernando, IPO Analyst says that frequently changing the companies’ names, registered offices, businesses, directors, etc. is the hallmark of SRS group!
Gold hogs limelight, leaves other commodities off sheen
During uncertain times, gold and silver are seen as good investments, and funds gravitate towards these safe heaven metals pushing up the prices.
RBI should not cut rates now
The worst possible confidence booster is a rate cut now. RBI should hold on to its stance of managing rising inflation expectations despite a sharp fall in economic sentiments globally.
What does an investor do after this black Friday?
Every market seems to be tumbling downwards. So, what does all this hold in store for the common man. The common Indian is already under pressure from rising inflation, investments giving poor returns and lower salary hikes too!
Yield curves are not toeing RBI's line
Yield curves are not toeing RBI's line of inflation rising and growth remaining steady. The current flat to inverted shape of the yield curve across fixed income securities, suggest that both inflation and growth will come off.
Auto industry outlook: It's a long drive, avoid short cuts
In the short run, increasing interest costs, rising input costs and wage inflation may reduce the profitability of the car and bike manufacturers. If you are looking for short term gains, you stay away from the auto sector for the couple of quarters. However for the long term investor, an exposure to the best names in the industry is advisable.
Tax filing: Here's how to save your money from being axed
When people are so keen to save tax upfront, why would they want to pay taxes on the money they are earning, especially if they can structure it in a way, they need not?
Something's got to give: Inflation or growth
The Reserve Bank of India (RBI) surprised the markets by raising the repo rate by 50 basis points (100 bps make 1%) in its policy review on Tuesday.
