Debt quality deteriorates in November

CARE Ratings has constructed an index, the Debt Quality Index, which “captures, on a scale of 100 (index value for the base year FY12), whether the quality of debt is improving or declining. Intuitively an upward movement indicates improvement in quality of debt benchmarked against the base year. As it is contemporary with minimum time lags, the health of the ... Read More »

How should one interpret the acquisition of Indulekha by HUL?

How should one interpret the acquisition of a small regional brand by Hindustan Unilever Ltd (HUL)? Last week, it said it will pay Rs.330 crore to acquire the Indulekha and Vayodha ayurvedic personal care brands from the Mosons Group. This amount will be supplemented with a payment of 10% of annual revenues annually for five years starting FY18. At an ... Read More »

Will banks cut loan rates now?

New borrowers are likely to benefit from the Reserve Bank of India’s (RBI’s) policy rate cuts from April when Indian lenders start calculating their minimum loan rate or base rate on the marginal cost of deposits. The base rate replaced the seven-year-old system of prime lending rate in July 2010 to bring in more transparency. However, the purpose does not ... Read More »

E-commerce trends | Survival of the fittest

E-commerce may have other benefits—less traffic on the roads, convenience, a wider range of products—but in India, there is no denying that people throng online marketplaces because of the discounts on offer. Photo: Bloomberg For almost two years now, shoppers on e-commerce sites in India have had it good. Flush with funds from venture capital firms, these e-tailers have offered ... Read More »

Coffee blues: outlook on prices is weak

  The current season’s coffee crop in India is forecast to be 7% higher than last year’s level. This post-monsoon estimate is slightly lower than the post-blossom estimate by 1.6% but the shortfall is not a deal breaker. Higher output is good news for growers but only if prices are stable or higher. The news on that front is not ... Read More »

Inox Wind shares lose altitude despite rapid growth

There is a buzz in the wind energy sector, with the government aiming to double capacity by 2022. But none of the excitement is visible in the Inox Wind Ltd’s stock. Its shares have fallen more than 20% since listing in April. The S&P BSE 500 index lost 8.6% during the period. This is despite the company’s strong performance in ... Read More »

Wagon makers seen waiting for orders in Railways de-congestion plan

The rebound in capital expenditure by the Indian Railways has sparked a rally in the shares of companies that depend on the national carrier for business. Shares of Titagarh Wagons Ltd, Texmaco Rail and Engineering Ltd and Kalindee Rail Nirman (Engineers) Ltd have gained in the range of 20-40% in the last three months. The stocks are rising on hopes ... Read More »

Power generation slips

Power generation in November was flat, compared with a year ago. In part, this was due to the base effect. Electricity production growth spiked to 10% in November 2014 and the overall figures show the same trend. In April-November 2015, power production increased only 4.55%, compared with 10.73% in the year-ago period. This comes at a time when gross domestic ... Read More »

E-commerce trends in 2015 | A year of war and truce

E-commerce was one of the first spaces to attract venture capital (VC) funding after the 2008-09 financial crisis. In early 2010, hedge fund Tiger Global invested $10 million in online marketplace Flipkart at a valuation of $50 million, a whopping 12.5 times higher than its previous valuation a few months ago. Two years later, Tiger Global invested $5 million in ... Read More »

India’s shipbuilding ambitions get a fresh lease of life

In the end, it was Prime Minister Narendra Modi and his ‘Make in India’ initiative that tilted the scales for the cabinet to sign off on a long pending policy, much to the relief of India’s beleaguered shipbuilders. That the shipbuilding policy took 17 months for cabinet approval after finance minister Arun Jaitley announced it in his budget speech on ... Read More »