2012 | Dalal Street

Market Expected to be Range Bound – No Big Rally

September 8, 20122 min read

The latest ECB decision on buying bonds cannot change the fundamentals of global economies overnight. Markets could benefit in the near term if we get a rally globally, however, we are skeptical on the sustainability of any sharp rally especially if we get a rise in global commodity prices. In fact, we are worried it could hurt India’s already fragile economy.

With the Government unable to move an inch due to political compulsions, India will likely overshoot the Budget target of 5.1%. With the Government struggling to hike diesel prices, an increase in oil prices globally could (more…)

Equity Research

Motherson Sumi – Consistently Strong Performance – Buy

September 6, 2012September 6, 20122 min read

Motherson Sumi a JV of Sehgal family and Sumitomo Wiring Systems has gone from being a wiring harness manufacturer to a broad based auto parts major.

Motherson’s acquisition of Visiocorp in 2009 has helped deliver a step change in scale. The 2011 acquisition of Peguform presents a larger challenge with a higher capital outlay straining the balance sheet. However, the Euro1.6bn revenue base of the business creates headroom for profit growth (more…)

Equity Research

Bajaj Finance – Gaining Investor Interest as Banks Under Pressure

September 5, 20122 min read

Bajaj Finance (earlier called Bajaj Auto Finance) started operations 25 years ago as a captive unit of Bajaj Auto, a promoter-owned two-wheeler manufacturer with 20% market share in the domestic two wheeler market (as of FY12). In August 2007, post a demerger from Bajaj Auto, Bajaj Finserv became the parent company of Bajaj Finance.

The company has focused on improving profitability consolidating the distribution franchise – rationalizing locations as well as dealer network, Realigning and diversifying products and customer segments; and Reducing risks by strengthening processes and systems and hiring / investing in key personnel.

Strong growth in disbursement and advances of (more…)

India IPO Reviews and Updates

Thejo Engineering – First SME IPO – Review and Recommendation

September 4, 20123 min read

The Govt and SEBI has done only one commendable job in the last 3 years, making all necessary arrangements for SMEs in India to go Public in a separate SME Section opened by the National Stock Exchange of India.

Thejo Engineering was established as a partnership in 1974, Thejo’s mission was to provide maintenance of conveyor belt systems and since then has come a long way. Pioneers in the cold vulcanization technology, Thejo is one of the few companies in India with facilities for manufacturing, sales and servicing of specialised engineering products. Thejo today is India’s only comprehensive solution provider in the bulk material handling, conveyor systems, mineral processing and corrosion protection sectors.

Objects of the IPO
Thejo is currently unable to serve the requirement of many clients due to (more…)

Breaking Corporate India Earnings News

Dr Manmohan Singh’s Arrogance, Corruption, Inflation will bring down the Congress Government – MidTerm Polls Inevitable

September 3, 20123 min read

So much do we hate to write about Politics here, but our Political Class have come to believe that quest for growth and the need for equity are mutually exclusive. It has escaped eminent attention that without growth there will be only poverty to distribute.

The Deadlock over the Coal Scam continues in the Parliament with Dr. Manmohan Singh having no signs of guilt and sticks to his arrogance which has given nothing but High Fiscal Deficit, Inflation and (more…)

Economy, Markets and Macro Views

Morgan Stanley Downgrades India GDP Forecast – Stagflation is Reality

September 3, 20122 min read

India, one of the best emerging markets from 2001 and the Gateway for Global IT has suffered a serious setback under the Congress Government for continued Policy Paralysis and the unearthing of Series of Scams [2G, CWG, Coal Mining, etc] never heard of in Global History of such massive and rampant corruption yet the tolerant citizens of the Nation toiling hard for survival. Amidst this background, the government is nothing but arrogant and the super weak Prime Minister is a miserable leader to head India Inc.

Morgan Stanley just a while ago downgraded Indian GDP growth expectations from 5.8% to just 5.1% for FY 2013 and from 6.8% to 6.1% for FY 2014. Morgan Stanley cited the following reasons for the downgrade, (more…)

« Prev 1 2 3 4 5 … 12 Next »