Perspectives

Investment strategy at the current juncture

A simplistic view taken by many analysts at present is that the Nifty is trading near its 10-year average valuation (see chart below) and hence, one should still be fully invested.

Will the Fed raise rates and the implications for Indian Markets?

Heavyweights have contrary opinions on what the Fed should do – IMF and World Bank (against) vs the BIS (for); so clearly the decision is not an easy one.

The three questions clients should ask Investment Advisors

Appropriate Asset Allocation is the principal determinant of long term investment returns. We hence inquire about the client’s existing Asset Allocation as a first step in our engagement process.

Is it time for contrarian bets on select companies in the Power Sector?

The power sector in India has been in the dog house for many years. High distribution losses and unbilled power has resulted in bankrupt SEBs (State Electricity Boards).

Indian Pharma industry: Implications of recent developments

Indian pharma leaders – for example Sun and Lupin- have witnessed a 25% price erosion from their highs. Are there structural challenges to growth or just a one off? What are implications for investors?

Using the impatience of others to your advantage

Threat of a poor monsoon, and fear of reduces MSPs for crops to control inflation seems to have got Dalal street in a tizzy with many brokerages recommending investors stay off Rural plays.

Why buy quality – a lesson from college days

Over the last weekend, I met friends from Engineering School days, some I had not seen for over 20 years. As copious amounts of beer was imbibed, we exchanged memories and achievements of our cohort of 1995.

The importance of cash generation over growth

We often get queried by prospective clients why Cash Generation is a “Gate” in our stock selection and why we emphasize Cash Generation over Growth. After all, Flip Kart is being valued at many Billions of dollars because of growth prospects and burns boat loads of cash.

Choosing the right investor – a guide for founders

Founders seem to have excessive focus on entry valuations with little consideration of anything else. In my experience, the quality of investor and terms on offer can significantly enhance probability of success.

My 3 biggest learnings working with Rakesh Jhunjhunwala

I was fortunate to have an opportunity to work with and be mentored by the great investor and trader, Rakesh Jhunjhunwala, for 8 years.