India - Politics, Industrials, IT and Large Caps, EMAlpha

Pankaj Sharma

India - Politics, Industrials, IT and Large Caps

Equity Bottom-Up

<p>In last two decades in India, Adani Group has been one of the most successful business houses and also easily, the most controversial one. The detractors claim that the success of the group is less about the business acumen of founders and more about 'crony capitalism' which gets encouraged in countries like India where the Govt has disproportionately large control in areas like infrastructure. We have been tracking some Group companies for more than ten years now and we also spoke to several people including the insiders, to understand if there is an image management issue with the group or there are valid reasons behind the criticism of its business practices.</p>

In last two decades in India, Adani Group has been one of the most successful business houses and also easily, the most controversial one. The detractors claim that the success of the group is less about the business acumen of founders and more about 'crony capitalism' which gets encouraged in countries like India where the Govt has disproportionately large control in areas like infrastructure. We have been tracking some Group companies for more than ten years now and we also spoke to several people including the insiders, to understand if there is an image management issue with the group or there are valid reasons behind the criticism of its business practices.

India On-The-Ground: Why Everyone Loves to Hate ADANI Group, Solid Reasons or Poor Image Management?

Power Grid Corporation Of India / Equity Bottom-Up

<h2>
<a href="https://www.smartkarma.com/entities/12621" target="_blank" data-smartkarma-citation="entities:12621:1">Power Grid Corporation Of India Limited (PWGR IN)</a> has become an underperformer</h2><p>In three years (from beginning of CY 14 till the end of CY 16), <a href="https://www.smartkarma.com/entities/12621" target="_blank" data-smartkarma-citation="entities:12621:1">Power Grid Corporation Of India Limited (PWGR IN)</a> was an outlier. The stock not just doubled during this timeframe but also outperformed the broader markets. This performance was strange for a company that is considered a defensive as it has a fixed nominal RoE based business model.</p><p>The good run continued in the first half of CY17 and the stock gained…</p>


Power Grid Corporation Of India Limited (PWGR IN) has become an underperformerIn three years (from beginning of CY 14 till the end of CY 16), Power Grid Corporation Of India Limited (PWGR IN) was an outlier. The stock not just doubled during this timeframe but also outperformed the broader markets. This performance was strange for a company that is considered a defensive as it has a fixed nominal RoE based business model.The good run continued in the first half of CY17 and the stock gained…

Power Grid: When Markets Are Booming, What Is Just Wrong with This Stock?

Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Thematic (Sector/Industry)

<h2><strong>Jio's Enterprise Services and Fibre-Optic Internet to Disrupt Wired Broadband Services</strong></h2><p>After disrupting the wireless broadband segment, Jio is now targeting wired services by offering business solutions for corporate connectivity and broadband services to homes. In January 2018, Jio conducted a soft launch of both the services in certain locations.</p><div class="content-caption"><strong>Market Share of Top 5 Wired Broadband Operators</strong></div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/043/054/original/j3.png?1516943888" class="editor-image img-responsive" data-smartkarma-image-id="43054"></figure><div style="text-align: left;" class="content-caption">Source: TRAI</div><p>As part of the soft launch, Jio will provide Multiprotocol Label Switching networks…</p>

Jio's Enterprise Services and Fibre-Optic Internet to Disrupt Wired Broadband ServicesAfter disrupting the wireless broadband segment, Jio is now targeting wired services by offering business solutions for corporate connectivity and broadband services to homes. In January 2018, Jio conducted a soft launch of both the services in certain locations.Market Share of Top 5 Wired Broadband OperatorsSource: TRAIAs part of the soft launch, Jio will provide Multiprotocol Label Switching networks…

As Jio Gears Up To Disrupt Wired Broadband Segment Is Privatisation Of BSNL Finally On The Cards?

Reliance Infrastructure / Equity Bottom-Up

<h2>
<a href="https://www.smartkarma.com/entities/4254" target="_blank" data-smartkarma-citation="entities:4254:1">Reliance Infrastructure Ltd (RELI IN)</a> finds a buyer for its Mumbai business</h2><p><a href="https://www.smartkarma.com/entities/4254" target="_blank" data-smartkarma-citation="entities:4254:1">Reliance Infrastructure Ltd (RELI IN)</a> yesterday announced signing of Definitive Binding Agreement with Adani Transmission Limited for 100% stake sale of its Mumbai Power Business. The total deal value is Rs132.5 bn. This comprises of business valued at Rs121 bn and regulatory assets approved at Rs11.5 bn. In addition, regulatory assets under approval estimated at Rs50 bn and net working capital on closing estimated at…</p>


Reliance Infrastructure Ltd (RELI IN) finds a buyer for its Mumbai businessReliance Infrastructure Ltd (RELI IN) yesterday announced signing of Definitive Binding Agreement with Adani Transmission Limited for 100% stake sale of its Mumbai Power Business. The total deal value is Rs132.5 bn. This comprises of business valued at Rs121 bn and regulatory assets approved at Rs11.5 bn. In addition, regulatory assets under approval estimated at Rs50 bn and net working capital on closing estimated at…

Reliance Infra Sells Mumbai Electricity Business at a Good Price, But Upside Already in Price Now

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

<p>Corporate malaise is the reality in India. This is clear in corporate financial analysis, with high debt/EBITDA and low interest coverage. The largest 51 debtors in India in our S&amp;P sample set have total debt of US$320 billion as at the latest full year. <a href="https://www.smartkarma.com/entities/6614" target="_blank" data-smartkarma-citation="entities:6614:1">Jindal Steel &amp; Power Ltd (JSP IN)</a> is included in this group. While the average interest cover ratio may be high, there are many at 1x or less. These companies hold US$68 billion in total debt and have an average interest cover ratio of 0.4x…</p>

Corporate malaise is the reality in India. This is clear in corporate financial analysis, with high debt/EBITDA and low interest coverage. The largest 51 debtors in India in our S&amp;P sample set have total debt of US$320 billion as at the latest full year. Jindal Steel &amp; Power Ltd (JSP IN) is included in this group. While the average interest cover ratio may be high, there are many at 1x or less. These companies hold US$68 billion in total debt and have an average interest cover ratio of 0.4x…

HDFC Bank: Finding the Next Jindal Steel & Power

India

Reliance Industries Ltd. manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The Company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, India that produces a wide range of products such as gasoline, superior kerosene oil and liquefied petroleum gas.

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Reliance Industries (RELIANCE IN)

India On-The-Ground: Why Everyone Loves to Hate ADANI Group, Solid Reasons or Poor Image Management?

In last two decades in India, Adani Group has been one of the most successful business houses and also easily, the most controversial one. The...

Pankaj Sharma

Power Grid: When Markets Are Booming, What Is Just Wrong with This Stock?

Power Grid Corporation Of India Limited (PWGR IN) has become an underperformerIn three years (from beginning of CY 14 till the end of CY 16),...

Pankaj Sharma

As Jio Gears Up To Disrupt Wired Broadband Segment Is Privatisation Of BSNL Finally On The Cards?

Jio's Enterprise Services and Fibre-Optic Internet to Disrupt Wired Broadband ServicesAfter disrupting the wireless broadband segment, Jio is now...

Chacko Jacob

Reliance Infra Sells Mumbai Electricity Business at a Good Price, But Upside Already in Price Now

Reliance Infrastructure Ltd (RELI IN) finds a buyer for its Mumbai businessReliance Infrastructure Ltd (RELI IN) yesterday announced signing of...

Pankaj Sharma

HDFC Bank: Finding the Next Jindal Steel & Power

Corporate malaise is the reality in India. This is clear in corporate financial analysis, with high debt/EBITDA and low interest coverage. The...

Daniel Tabbush

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