India focused Portfolio Advisory - Exp of 40+years, Das Capital Management and Advisors

Arun Thirumalai

India focused Portfolio Advisory - Exp of 40+years

Das Capital Management and Advisors

Das Capital is a research boutique with an aim to continuously map and plan the investment needs of investors focused on India. We have a six member research team with a combined experience of over 40 years as a part of our investment wing. Our team assisted in the setup of Premji Investments, which was one of India’s first family offices focused to managing Mr.Azim Premji personal wealth. We also serve as a research team to two Indian private equity energy funds “Small is Beautiful” and “KSK Emerging India Energy Fund”.

Macroeconomics

Equity markets across emerging countries in 2018 faced significant headwinds primarily due to rising US Fed rates that led to a capital outflow as well as higher commodity prices including crude oil that affected the profitability of companies. India was no exception.
The corporate results in India were a mixed bag. While sales have finally recovered from the impact of demonetization and GST transition, the profitability was impacted due to high commodity prices and rising provisions due to higher bad loans for the banks.
On a positive note though, a number of  things seem to have fallen in place in 2018 like NCLT lead NPA resolution, bank management changes, increased capacity utilization, lower inflation, falling commodity prices. If the same trend were to continue in 2019, we are confident that macros will turn more favorable and improved corporate sales can translate into better earnings growth.  This we believe may augur well for Indian equities.
We examine all these factors in detail

Equity markets across emerging countries in 2018 faced significant headwinds primarily due to rising US Fed rates that led to a capital outflow as well as higher commodity prices including crude oil that affected the profitability of companies. India was no exception.
The corporate results in India were a mixed bag. While sales have finally recovered from the impact of demonetization and GST transition, the profitability was impacted due to high commodity prices and rising provisions due to higher bad loans for the banks.
On a positive note though, a number of  things seem to have fallen in place in 2018 like NCLT lead NPA resolution, bank management changes, increased capacity utilization, lower inflation, falling commodity prices. If the same trend were to continue in 2019, we are confident that macros will turn more favorable and improved corporate sales can translate into better earnings growth.  This we believe may augur well for Indian equities.
We examine all these factors in detail

India Equity CY18 Update and Outlook for CY19