June, 2014 | Dalal Street

NaMo Practiced Clean Industrialization in Gujarat

June 25, 20142 min read

As Shri Narendra Modi administration assumes office in Delhi, we analyse the Gujarat model of doing business adopted by the state during his tenure as the Chief Minister. The main focus of our study was on three aspects: Gujarat’s (i) framework for land acquisition and allocation to the industry, (ii) strategy to develop Common Effluent Treatment Plants to support industrial development, especially SMEs, and (iii) efficient water management by river integration.

Land Acquisition: Gujarat has tackled several pain (more…)

Mutual Funds Review

DSB 10 Year MoM Rolling IRR for HDFC Mutual Funds

June 10, 2014June 10, 20143 min read

This Article is a Must Read for everybody as we introduce a new benchmark of calculating 10 Year SIP Returns –

DalalStreet.Biz [DSB] 10 Year Rolling MoM Internal Rate of Return for Mutual Funds in India

We started off with 5 of the Top Performing Funds which we recommended 11 years ago.

Since we posted just on twitter a year ago about our new methodology of researching mutual funds, I’m sure most of you must have (more…)

Equity Research

Amtek Auto – Set to Play on Indian Automotive UpMove

June 9, 2014June 8, 20142 min read

Amtek Auto is India’s second-largest auto components company, with revenues of INR156bn. It has a global market share of 20% in turbocharger housings and 15% in ring gears. Amtek Group has been very aggressive with capex and acquisitions [Tekfor and Kuepper] in the past — this has not played out as expected by management, due to Corrupt Governance & Policy Paralysis during Sonia Gandhi’s Congress Regime in the key markets of India (57%) and Europe (~37%) led to significant debt build-up. Amtek management is now focused on improving return ratios and generating free cashflows, which should be taken positively by the market.

Amtek is a high-beta play on recovery in (more…)

Breaking Corporate India Earnings News

India Financial Sector to Benefit from Economic Growth

June 4, 20142 min read

India is all set to become a $5Trillion Dollar Economy in GDP terms by 2025. Backtracking the numbers, Financial services will be a big beneficiary – of this growth. According to Morgan Stanley, for this GDP growth to be achieved, the financial services sector will need to grow in the high teens over the decade.

The last three years have not been kind to the India Financials. The persistent economic slowdown and high interest rates caused default levels to rise (more…)

Economy, Markets and Macro Views

Black Money Taxation can Wipe Out India’s Fiscal Deficit

June 4, 2014April 18, 20202 min read

The White Paper on Black Money[Non Tax Paid] in India makes for very good background reading on various ways of generating black money: the paper focuses on black money generated via non-disclosure to public authorities rather than that generated from illegal activities.

How is Black Money Generated in India ?
Eighteen ways of manipulating accounts to (more…)