Category: Economy, Markets and Macro Views

The RBI is likely to issue new bank licence soon. The key question before investors is whether or not to buy the new bank licensees over the existing and well established franchises such as HDFC Bank & Axis Bank. Our fundamental & quantitative analysis shows that significant value could accrue to investors from new bank licensees with a well-executed strategy.

Empirical evidence shows that new bank licensees have potential to deliver high returns during (more…)

L G Balakrishnan & Bros (LGBL), the flagship company of ELGI Group, is a leading supplier of transmission chains to the automobile industry under the brand, Rolon. Transmission chains are also known as automotive chains. LGBL has a around 70% market share in the OEM chain segment and around 50% market share in the replacement segment. The technology is the entry barrier in this business as chains are precision components. As vehicles become sleeker and powerful, the chain quality has to improve.

The transmission segment mainly caters to OEMs and replacement (more…)

We’d like to highlight how the so called Economic Think Tanks in the Congress Government destroyed the Indian Economy even though they were wearing the mask of Mr. Right & Bright but in reality the Graphs of Economy presented below give a “Failure” Grade to Mr P. Chidambram (Finance Minister) who inherited a bad economy and Mr. Anand Sharma (Commerce Minister) vocally defending his Scamster colleagues. The Corrupt Congress regime is to be blamed for all the Adversaries in the Indian Economy as presented by facts and Graphs from our Research Database.

Pathetic Quarterly GDP Growth of mere 4% in the Last 12 months due to Impotent Governance by (more…)

With the underlying Economic indicators showing signs of recovery, a comprehensive analysis of Indian banks’ profitability matrices, suggests that asset quality stress tests and near-term strategies, present three key takeaways: 1) Private banks are well positioned, with the capital and liabilities to benefit from an economic recovery. 2) Lack of capital is a challenge for PSU banks, whose urgent need for equity dilution may keep valuations subdued even as the economy improves. 3) Capital inefficiencies may keep valuations down for PSU banks, whereas valuations could expand for private banks due to better capitalisation.

PSU banks have lost their core (more…)

Two star economists with a free market bent – Jagdish Bhagwati and Arvind Panagariya – appear to be the intellectual godfathers of Progressive BJP led NDA’s forthcoming election manifesto. These gents have published a book in 2013 – India’s Tryst with Destiny – in which they have criticized the UPA’s redistributive policies (Food Security Act, NREGA, etc), declared their fondness for the “Gujarat model” and advocated an economic renewal program centred on cutting universal subsidies, reviving spend on infrastructure, reforming India’s antiquated labour laws and reforming the country’s higher education system.

Both professors have steadfastly supported Narendra Modi in the domestic and international press. Whilst they deny having any official role (more…)