Price2Value

20/12/2017

India Aviation Sector: Key Profitability Drivers
10-Yr growth rate for:
1) Capacity: 7.6%, Demand: 10%, resulting in increase in load factor from 69% to 84%
2) Fuel volume consumption: 5%
Plus, fuel cost as % of revenue: 50% to 30% due to lower oil prices, enabling lower prices and better competitiveness with Railways

30/06/2017

Reliance Capital has stated that Madhusudhan Kela will be moving to a part-time advisory role from July 1st., to spend a significant portion of his time on spiritual and philanthropic pursuits with the renowned spiritual guru Sadhguru, and the Isha Foundation. He is being appointed in a non-executive capacity to the Board of Directors of Reliance Securities. - more at http://www.price2value.in

11/04/2017

The Rupee has strengthened to 63/$ in a month on the back of fund inflows and a healthier economic climate based on the GST implementation and a potential resolution to the problem of bank NPAs. But the rising Rupee squeezed earnings of exporters since they had left unhedged positions anticipating a slide in the the Rupee. Consequently, now they will receive less rupees for their dollar earnings. (ET) Impact: Negative for IT, pharma, textiles, Chemicals, etc. - more at Price2Value.in

11/04/2017

How will GST impact prices of goods?
Almost 70% of all goods, including cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under GST as most items are likely to be subject to the tax rate of 18% rather than the higher one of 28%. The GST legisltion contains an anti-profiteering clause to ensure that industry passes on tax benefits to consumers by lowering prices where applicable. Impact:Positive for FMCG and Consumer Durables sectors as cheaper prices for consumers will drive volume growth. - more at Price2Value.in

04/04/2017

SC ban derails Liquor industry.
The SC order banning sales of alcohol within 500 metres of national and state highways would make nearly 1/3rd of the 65,000+ licensed, branded liquor outlets in the country to be relocated or shut. However, states may de-notify state highways within cities and towns and turn them into urban roads.

Impact: This is expected to disrupt sales in the next two months. CLSA has estimated a 5-7% impact on revenue and a 17-28% impact on EPS for United Spirits. However, analysts point out that stocks of liquor companies have bounced back post such disruptions earlier as the demand for liquor in India is very much there. - www.price2value.in

04/04/2017

RBI being empowered to resolve bank NPAs.

Govt plans legislation that will enable RBI to issue directions to banks on dealing with stressed assets, particularly on the top 50 NPA accounts. So far, banks had been reluctant to resolve NPAs through settlement schemes or sell bad loans to asset reconstruction companies for fear of being hauled up by investigating agencies.

Impact: Lower NPAs will encourage banks to lend more and to lower interest rates further, which will encourage private investment - badly needed to speed up growth, and also lead to higher revenue growth for banks. Profitability will rise due to operating leverage. Cleaner books will lead to investors giving a higher P/B multiple. Overall a very positive impact for banks.

20/05/2016

4 Equity Mutual Fund categories outshone others in the past 3 years:
Mutual Fund investors would have made average annual returns of 31% in small-cap equity schemes such as DSP Blackrock Micro Cap Fund, Franklin India Smaller Companies Fund and Reliance Small Cap Fund. IT oriented funds such as ICICI Prudential Technology Fund, Birla Sun Life New Millenium Fund and Franklin Infotech Fund gave annualised returns of 25%. Mid-cap equity funds and Pharma funds gave returns of 24.3% and 23.7% respectively. (Source: Business Standard) - more at http://www.price2value.in

20/05/2016

Investment lessons from Sachin Tendulkar's career:
1) It pays to start early - The Master Blaster started his career at the early age of 16.
2) Stay focused on achieving your financial goals - Sachin was focused solely on attaining his dream.
3) Keep emotions like greed or fear under control - Whether it was a big hundred or a duck, Sachin never overplayed his emotions on the field.
4) Do your homework - It was only through commitment and hard work that Sachin won the heart of millions
- more at http:/www.Price2Value.in

19/05/2016

The total number of active Systematic Investment Plans (SIP) accounts in the Indian mutual fund industry has touched an all-time high of 1 crore. The average size of an SIP is Rs. 5,000 per month. Almost 45 lakh new SIPs were registered in FY16 and the net addition, after closures, was nearly 23 lakh. This was driven by the industry's efforts to enhance investor education about mutual funds, especially in smaller towns. Also, interest rates on FDs are declining, gold is not giving much return, and real estate is still expensive. - http://www.price2value.in

17/05/2016

Hi, can I request you to fill in a short survey regarding Investing in Mutual Funds. To fill it out, visit:
https://docs.google.com/forms/d/11JKk2A0Cx2m5Xc8I0_4kBf6frO-gz0jztQCbtHEnAl8/viewform?c=0&w=1&usp=mail_form_link

Market research to understand prevailing attitude towards investments

02/05/2016

Astra Microwave (mid-cap company in Defence sector): Increase in domestic biz vs. exports drove Rev by 15%, PAT by 250% YoY in Q4 -more at http://www.price2value.in

29/04/2016

Granules India: Finished Dosages biz increases to 40% of Rev from 33% YoY driving Q4 growth -http://www.price2value.in