Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

I possess investment research experience across asset classes and geographies, acquired at Investcorp (New York) and Howe & Rusling (Rochester). At Investcorp, an alternative asset manager, I was part of an investment team managing >$1bn in discretionary client assets. I was also a member of investment recommendation, monitoring, cross-asset strategy and macro outlook committees that met periodically for investment decisions and top-down views. At Howe & Rusling, a long-only asset manager, I helped cover US large-cap equity investments across sectors for growth and income focused portfolios as well as assisted in managing a US small-cap growth focused equity portfolio. I possess an MBA in finance and corporate accounting from University of Rochester in US, a CFA Charter, and an Engineering degree from Indian Institute of Technology Bombay in India.  

My current focus is L/S equity fundamental research across market cap and sectors with an eye on corporate governance and forensic accounting. I am currently based in India and my current coverage universe is biased towards India.

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Regulatory Disclosure: Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details -
Address: A-602, Titanium Business Park, Makarba, Ahmedabad - 380051 |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289

Compliance/Grievance Officer -
Name: Ankit Agrawal |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289
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Equity L/S Analyst | Forensic Accounting | India

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Thematic (Sector/Industry)

India Consumer finance / Thematic (Sector/Industry)

India’s Non-Banking Financial Corporation (NBFC) liquidity crisis needs no introduction. Post the default of AAA rated IL&amp;FS in Sep 2018 and subsequent fall-out of certain financial groups and a couple of large conglomerates, credit markets in India have been reeling under significant pain and anguish.
The Government, over the past few months, has been actively taking steps to curtail some of the impediments for the economy. This insight is on one such policy measure that the Government is considering. As reported by Bloomberg in a recent article (<a href="https://www.bloomberg.com/news/articles/2019-12-04/india-is-said-to-mull-easing-lending-rules-for-shadow-banks-k3qvobds" target="_blank" rel="noopener">here</a>), the Government is mulling expanding the current rating band (to BBB+ and above from current AA and above) for its Partial Credit Guarantee Scheme provided to NBFCs for securitization to public-sector banks.
We analyze the impact of this policy measure below and provide certain recommendations to benefit from such policy measures and other tailwinds for the NBFC sector. Based on our assessment, we recommend taking a basket approach via investments in three high-quality NBFCs (MAS Financial, Sundaram Finance, and Cholamandalam Investment and Finance) whose asset mix is largely linked to MSMEs, LAP and Vehicle Loans (with a focus on commercial vehicles [CVs]).

India’s Non-Banking Financial Corporation (NBFC) liquidity crisis needs no introduction. Post the default of AAA rated IL&amp;FS in Sep 2018 and subsequent fall-out of certain financial groups and a couple of large conglomerates, credit markets in India have been reeling under significant pain and anguish.
The Government, over the past few months, has been actively taking steps to curtail some of the impediments for the economy. This insight is on one such policy measure that the Government is considering. As reported by Bloomberg in a recent article (here), the Government is mulling expanding the current rating band (to BBB+ and above from current AA and above) for its Partial Credit Guarantee Scheme provided to NBFCs for securitization to public-sector banks.
We analyze the impact of this policy measure below and provide certain recommendations to benefit from such policy measures and other tailwinds for the NBFC sector. Based on our assessment, we recommend taking a basket approach via investments in three high-quality NBFCs (MAS Financial, Sundaram Finance, and Cholamandalam Investment and Finance) whose asset mix is largely linked to MSMEs, LAP and Vehicle Loans (with a focus on commercial vehicles [CVs]).

Cholamandalam Investment and Finance (CIFC IN)

Indian NBFCs - Equity Opportunities: Pessimism Bottoming Out, Time to Accumulate