The large size of Indian population is a blessing in disguise for Footwear Retail Chains. It is is treading growth path, backed by benign demographics, rising affordability, increasing incomes and evolving tastes. Organized Retailer control 30% of the Footwear market in India. Bata took the initial lead to expand 8 years ago and has seen the fruits of its investments. Today, we’d like to recommend two stocks in the footwear industry – Relaxo Footwear and Mayur Uniquoters as recommended by Anand Rathi Research in a report. Both Bata and Relaxo are looking at expanding distribution network. Bata is emphasising on tier II/III cities, whereas Relaxo pan India. (more…)
Year: 2012
Is the Rally on Back of Strong macro Economic Measures or Global Liquidity ?
Several Large Institutional Investors have been focused on India’s tepid macro [For beginners, Read macro as Govt, RBI, etc – Policies & Measures ]and missed the proverbial “market” boat. The market has seemingly defied a bad macro and made gains through 2012 even before recent events unfolded.
Bad Macro does not necessarily mean Bad Earnings for companies – GDP growth is crucial to corporate fundamentals. However, a high GDP growth does not mean high profit growth and vice versa. Profits are about revenues and (more…)
Government Continues with Reforms – FDI Insurance, Pension, Companies Bill
The Union Cabinet has cleared a slew of important bills such as hiking FDI in insurance and pension sectors which have been pending for a while. Importantly, these bills need to be approved by Parliament before becoming a reality.
Continuing with the reform process, the Union Cabinet today cleared several important bills as follows, (more…)
What is the Impact of CRR Cut by RBI on Indian Banks ?
2 days ago the RBI cut the CRR by 25bps leaving the policy rates (repo / reverse repo) unchanged at 8.0/7.0%, respectively. The Chart on your Left shows 25bps CRR cut impact on Banks.
Most banks have already cut rates across products by +25-75bps (home, auto, SME), while leaving key “Base Rates” unchanged. Analysts expect banks (more…)
Diesel Prices Hiked by Rs 5 + LPG Restricted to 6 Per Year – Fiscal Reform Finally
Finally, the Manmohan Singh Government has taken a strong decision to hike the Fuel Prices, especially Diesel where State Oil Marketing Companies had been losing heavily. Effective Midnight, the following measures come into force,
- Hikes diesel price by Rs.5/litre
- LPG subsidy limited to 6 cylinder per family per year which means 7th cylinder you buy for a family will come at Rs.750/cylinder versus the rate of Rs.399/cylinder
- Some reduction in excise duty
- Branded/Power diesel will be sold at market rates
That’s the difference the (more…)
Infosys’ Lodestone Acquisition to drive Revenues, Normalize Margins
Infosys is acquiring acquire Lodestone for an EV of US$350mn in cash, payable in two tranches – USD 250Mn upfront and the rest after 3 years, subject to certain conditions. Lodestone is a Swiss SAP consulting firm with US$ 217mn revenues in 2011 with 83% coming from Europe (50% in Switzerland, 23% in Germany).
Lodestone advises clients on strategy and process optimization and provides business transformation solutions enabled by SAP. Lodestone has more than 200 clients across industries with a vertical mix of 28% revenues from life sciences, 17% from (more…)