Specialist in Indian Banking and Economic Research

Hemindra Hazari

Thematic (Sector/Industry)

There are high hopes that Urjit Patel, the new RBI governor will attempt to revive bank lending, and thereby stimulate capital investment in the Indian economy. But that would require his having the right diagnosis in the first place. The current approach is that India suffers from a 'balance sheet' issue of over-leveraged large corporates and banks burdened with poor asset quality. Resolving these issues through stringent asset recognition norms and recovery mechanisms combined with economic reforms will put India back on the track of high investments. However, RBI's own data shifts the spotlight elsewhere but strangely nobody appears interested in exploring further as it challenges the mainstream view.

There are high hopes that Urjit Patel, the new RBI governor will attempt to revive bank lending, and thereby stimulate capital investment in the Indian economy. But that would require his having the right diagnosis in the first place. The current approach is that India suffers from a 'balance sheet' issue of over-leveraged large corporates and banks burdened with poor asset quality. Resolving these issues through stringent asset recognition norms and recovery mechanisms combined with economic reforms will put India back on the track of high investments. However, RBI's own data shifts the spotlight elsewhere but strangely nobody appears interested in exploring further as it challenges the mainstream view.

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the Line of Control (LoC) into Pakistan Occupied Kashmir. This is a first time that India has actually crossed the LoC to send a strong signal to Pakistan and this action, unfortunately, increases the risk of confrontation well into the future. Historically any tensions between India and Pakistan were defused by back channel intervention of global powers…

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the Line of Control (LoC) into Pakistan Occupied Kashmir. This is a first time that India has actually crossed the LoC to send a strong signal to Pakistan and this action, unfortunately, increases the risk of confrontation well into the future. Historically any tensions between India and Pakistan were defused by back channel intervention of global powers…

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

Managing Partner, Ampersand Investment Advisors

Rahul Singh

Managing Partner

Ampersand Investment Advisors

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively unknown names or proven track record. Even as foreign inflows through ETFs chased the large caps, domestic flows have led to a surge in midcap valuations and growth expectations in several names are bordering on the unrealistic now. This has to be a concern and could be a lead indicator of market volatility and imminent correction.Since the overriding sentiment in this newsletter is that the markets will correct, the most prudent course of action would be to partially book profits wherever valuations don't support fundamentals. Meanwhile, we would continually scout for new ideas as well as consolidate existing position in stocks/sectors we strongly believe can generate absolute returns i.e. Cement, NBFCs, Speciality Chemicals. Beneficiaries of rising construction equipment demand is in focus in this edition.

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively unknown names or proven track record. Even as foreign inflows through ETFs chased the large caps, domestic flows have led to a surge in midcap valuations and growth expectations in several names are bordering on the unrealistic now. This has to be a concern and could be a lead indicator of market volatility and imminent correction.Since the overriding sentiment in this newsletter is that the markets will correct, the most prudent course of action would be to partially book profits wherever valuations don't support fundamentals. Meanwhile, we would continually scout for new ideas as well as consolidate existing position in stocks/sectors we strongly believe can generate absolute returns i.e. Cement, NBFCs, Speciality Chemicals. Beneficiaries of rising construction equipment demand is in focus in this edition.

Big Money, Small Ideas - Sep 16 Newsletter

Govt decision to appoint Urjit Patel as next RBI Governor will assuage investor concernsIn its decision to appoint Dr Urjit Patel as the next governor of the Reserve Bank of India, the govt has sent a clear message to the investor community that it is business as usual even after the end of incumbent Rajan's term on 4th Sep'16.  Quite like the incumbent, Dr Patel also has excellent creds with his education at top global schools and then extensive work in public policy at IMF, Ministry of Finance…

Govt decision to appoint Urjit Patel as next RBI Governor will assuage investor concernsIn its decision to appoint Dr Urjit Patel as the next governor of the Reserve Bank of India, the govt has sent a clear message to the investor community that it is business as usual even after the end of incumbent Rajan's term on 4th Sep'16.  Quite like the incumbent, Dr Patel also has excellent creds with his education at top global schools and then extensive work in public policy at IMF, Ministry of Finance…

Quick Event Wrap: Sound Choice by Govt in Urjit Patel; India GST Plans Speed Up; Traders Corner-INR

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

Growth outlook remains tilted to the downside.Fiscal and Monetary Policy have become confusing amidst a lack of meaningful structural reforms.Policy rates are likely to remain at current levels; downside risks to overvalued rupee.

Growth outlook remains tilted to the downside.Fiscal and Monetary Policy have become confusing amidst a lack of meaningful structural reforms.Policy rates are likely to remain at current levels; downside risks to overvalued rupee.

India: Growth Outlook Remains Tilted to the Downside

India

Blue Star Limited manufactures and markets a wide range of air-conditioning and commercial refrigeration systems and products. The Company's products include large central air-conditioning plants, packaged air-conditioning systems, split and window air conditioners, water coolers, bottled water dispensers, deep freezers and cold storages.

Cera Sanitaryware Ltd. manufactures sanitary wares, and trades bathroom accessories and captive nonconventional energy. The Company's products include sanitary wares, glass basins, whirpools, bathtubs, shower range and bath fittings.

Electrosteel Castings Limited manufactures steel castings, grinding media and spun-cast iron pipes.  The Company also manufactures steel ingots, cast-iron castings and ductile iron pipes.  Electrosteel Castings also manufactures pig iron. The Group exports its products to a number of countries, including those in Europe, South-East Asia and Africa.

Somany Ceramics Limited manufactures ceramic wall and floor tiles. The Group exports its products to Europe, the Middle East, Australia, New Zealand, Mauritius, South Africa and Sri Lanka.

Stylam Industries Ltd. manufactures high-pressure laminates.  The Company produces laminates in many colors and that simulate wood grain and metals.

Acrysil Limited manufactures and exports Composite Quartz Granite Kitchen Sinks from India.

Everest Industries Ltd. manufactures asbestos cement sheeting products such as corrugated roofing sheets, corrugated curved tanks, roofing extractors, etc. The Company also manufactures accessories for roofing sheets and its products are sold under the brand name "Everest."

Asian Granito India Limited manufactures a wide range of vitrified tiles.

Rushil Decor Ltd. manufactures building products.  The Company produces particle board, medium density fiberboard, and decorative high pressure laminate sheets.

BEML Limited produces and sells earthmoving equipment, including railway rolling stock, heavy duty vehicles, wheel loaders, trailers, excavators and heavy recovery vehicles.

LIXIL Group Corporation produces aluminum housing materials such as doors, windows,curtain walls, and screens.  The Company also sells interior materials and a variety of housing equipment.

Takasago Thermal Engineering Co., Ltd. constructs air-conditioning facilities in commercial, institutional, and industrial buildings.  The Company also develops and constructs clean room systems for semiconductor manufacturers. Additionally, Takasago Thermal manufactures and sells air-conditioning related equipment.

Masonite International Corporation operates as a holding company. The Company, through its subsidiary, manufactures residential and commercial doors. Masonite offers interior, entry, and patio doors through a network of local dealers and home improvement retailers. Masonite International serves customers worldwide.

PGT Innovations, Inc. manufactures and sells windows and doors. The company's impact-resistant products, which are marketed under the WinGuard, PremierVue and PGT Architectural Systems brand names, combine heavy-duty aluminum and vinyl frames with laminated glass to provide protection from hurricane-force winds and wind-borne debris. It also manufactures non-impact resistant products in both aluminum and vinyl frames, including its SpectraGuard line of products. PGT Innovations was founded on December 16, 2003 and is headquartered in North Venice, FL.

Patrick Industries, Inc. manufactures and distributes building products for the manufactured housing, recreational vehicle, furniture manufacturing, marine, automotive aftermarket, and other industries.  The Company manufactures vinyl and paper panels, cabinet doors, countertops, aluminum extrusions, drawer sides, pleated shades, wood adhesives, and laminating machines.

Gibraltar Industries Inc is a manufacturer, processor, and distributor of metals and other engineered materials for the building products, vehicular, and other industrial markets. The Company serves customers in a variety of industries in North and South America, Europe, and Asia.

NICHIAS CORPORATION manufactures a variety of building and insulating-related materials.  The products include sealing, refractory insulating materials, and fluoropolymers.  The Company also provides comprehensive insulation engineering works.

Zhuzhou Kibing Group Company Limited manufactures, sells and processes glass products and provides handling services. The Company's main products include float glass, LOW-E coated glass, LOW-E coated glass substrate and further processed glass products.

Uponor Oyj manufactures and markets a wide range of plastic pipe systems for portable water and gas distribution, plumbing and heating, telecommunications, and sewage disposal.  The Company's product line includes under-floor heating systems, pipes for utility water systems, frost-free water supply systems, and radiator heating.  Uponor produces in many countries and markets worldwide.

dormakaba Holding AG provides mechanical and electronic security systems. The Company offers door closer systems, electronic access, master key, safe locks, and movable walls. dormakaba Holding markets its products worldwide.

Kajaria Ceramics Limited manufactures glazed and unglazed ceramic tiles. The Company sells its products in India and it also exports them to other countries.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Kajaria Ceramics (KJC IN)

Bank Credit Growth: Wrong Diagnosis ?

There are high hopes that Urjit Patel, the new RBI governor will attempt to revive bank lending, and thereby stimulate capital investment in the...

Hemindra Hazari

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the...

Asia Advisors

Quick Event Wrap: Sound Choice by Govt in Urjit Patel; India GST Plans Speed Up; Traders Corner-INR

Govt decision to appoint Urjit Patel as next RBI Governor will assuage investor concernsIn its decision to appoint Dr Urjit Patel as the next...

Asia Advisors

India: Growth Outlook Remains Tilted to the Downside

Growth outlook remains tilted to the downside.Fiscal and Monetary Policy have become confusing amidst a lack of meaningful structural...

Rajan Govil

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bank Credit Growth: Wrong Diagnosis ?

There are high hopes that Urjit Patel, the new RBI governor will attempt to revive bank lending, and thereby stimulate capital investment in the...

Hemindra Hazari

Rising Geopolitical Risks in Indian Sub-Continent: Towards a Worse-Off Sub-Optimal Nash Equilibrium

Geopolitical tensions in the sub-continent, already running high, have taken a turn for the worst as India carried out surgical strikes across the...

Asia Advisors

Big Money, Small Ideas - Sep 16 Newsletter

In what has been a range bound market, the element which stood out in recent times is increased participation of small/micro caps with relatively...

Ampersand Investment Advisors

Quick Event Wrap: Sound Choice by Govt in Urjit Patel; India GST Plans Speed Up; Traders Corner-INR

Govt decision to appoint Urjit Patel as next RBI Governor will assuage investor concernsIn its decision to appoint Dr Urjit Patel as the next...

Asia Advisors

India: Growth Outlook Remains Tilted to the Downside

Growth outlook remains tilted to the downside.Fiscal and Monetary Policy have become confusing amidst a lack of meaningful structural...

Rajan Govil