Equity

Implications of re-pricing of credit risk in India

India has implemented two significant regulations in the recent past. GST and the Bankruptcy Code. We argue that a third one is on the way which will lead to Re-pricing of Credit risk

A perspective on FMCG valuations

The best businesses are those that can grow predictably while generating cash and can grow without any or very little reinvestment of this cash.

High Noon for wholesale funded NBFCs

In our Q2FY18 letter dated 4 July 2017, we had made the following observations

Should one add to equity exposure at present?

Markets have done well over the last 12 months with the NIFTY up ~ 25%. A common question we encounter at present is whether one should add to their Equity exposure at present.

It was the best of times, it was the worst of times
– Charles Dickens, A Tale of Two Cities

Tell me where I am going to die, so I will never go there

The above quote is attributed to Charlie Munger, universally acknowledged as amongst the wisest men in Investing.

The danger of 1 Year Forward Multiples

A common tendency while gauging valuation of companies is to estimate the one year forward multiple at which they trade. Our core investment approach is to “Buy Quality Companies at Fair Valuations”.

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?

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.