Dalal Street

Mahindra and Mahindra Financial Services – MMFSL is a dominant player in rural vehicle finance market. MMFSL has clear advantage vs competition, in that, most competitors have single / fewer product (vs MMFSL’s diversified product offering) or are regionally focused (vs MMFSL’s pan India). Finally, despite slower (~6-10%) underlying volume growth across products. Expect MMFSL to show healthy AUM growth (~30%) in FY14, as it gains market share, with larger distribution in the semi-urban, rural segments and a close-to-customer model and strategic tie-up with other OEM.

Asset Quality Policies like linking a part of employees’ pay to asset quality, (more…)

With the the fall in global commodity prices over the past month, investors have been adding to their positions in India. Majority of investors were slightly overweight India.

Rate cut the Only Silver Lining
The current rally in the market could be attributed as investors position themselves for a faster than consensus rate cut led by (a) inflation falling faster than expected. The WPI data today at just under 5% has borne out this view (b) falling oil and gold prices helping ease the current account deficit worries (c) expectations that the change of RBI Governor would lead to faster rate cuts. Our analysis indicates that there is no clear (more…)