The economic slowdown is likely to weigh on the credit offtake of the banking system, but brokerage firm BNP Paribas says in India the sector will recover, thanks to lower cost of funds, cost efficiencies and lower tax.The brokerage said higher operational efficiency driven by digital initiatives and lower workforce requirements will ensure that the cost to income ratio maintains its downward trajectory."We believe a lower cost of funds, cost efficiencies, and the benefit from lower tax rates should lead to return on equity (RoE) accretion of 370bps for private banks. Higher RoEs should warrant much higher price-to-book ratios (P/Bs). We see a 10-15 percent upside from current valuations for private banks over the next five years," said BNP Paribas.Close Given that the asset quality cycle has peaked, the credit cost should be lower than those in the previous cycle, the brokerage said. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks … [Read more...] about Banking set to see a recovery, life insurance the next big sector: BNP Paribas
Insurance lead generation companies
Life insurance and asset management companies (AMC) are likely to be high-growth businesses due to the financialization theme that is playing out, Rusmik Oza, Head of Fundamental Research, Kotak Securities, says in an interview to Moneycontrol’s Kshitij Anand.Edited excerpts:Close Q) What is your assessment of the September quarter earnings? If you had to describe them in one word, what would that be? What were the highlights?Rusmik OzaHead of Fundamental Research|Kotak Securities 'Corporate tax cut will boost earnings by 15-20%; HDFC Bank, ONGC, M&M among 20 cos to benefit the most'Cement, oil & gas among 3 sectors likely to outperform; here’s why'Nifty unlikely to test 12,000; expect the slump in earnings to continue in Sept quarter'A) If one has to summarise the September quarter results in one word, it would be ‘Decent’. Further, if it needs to be summarised in a sentence, it would be ‘Optically healthy on earnings, due to corporate … [Read more...] about Don’t miss! Stocks from life insurance and AMC likely to be included in Sensex & Nifty
Swiggy on November 20 said it has set up over 1,000 cloud kitchens for its restaurant partners and plans to have more such facilities in 12 new cities by March next year.In a span of just two years, the company has invested in over a million square feet of real estate space across 14 cities to help large, medium and small restaurant partners expand to more locations both within their city and across new cities through cloud kitchens, Swiggy said in a statement."Swiggy has always maintained that cloud kitchens will be the future of food delivery. Very soon, India will have the second-highest number of cloud kitchens in the world, only next to China," Swiggy New Supply CEO Vishal Bhatia said.Close The milestone of Swiggy successfully creating over 1,000 partner kitchens shows the faith the restaurant partners have in the concept and bolsters company's pioneering efforts in enabling more success stories in the restaurant ecosystem, he added. related news Zydus Cadila gets USFDA … [Read more...] about Swiggy set up 1,000 cloud kitchens; to expand it in 12 new cities by March 2020
The recent sharp rally in paper stocks following the government's pledge to eliminate single-use plastic has made investors sit up and take note.Many are of the opinion that the government’s shun-plastic push has brightened the prospects of paper companies. But, analysts and industry watchers are less convinced with this rally.The government has pledged to eliminate single-use plastic by 2022. As per reports, a nationwide ban on single-use plastic, including bags, cups and straws, could come as early as on October 2, the 150th birth anniversary of Mahatma Gandhi.Close Since August 15, when Prime Minister Narendra Modi urged citizens to give up single-use plastic by October 2, 20 paper stocks have surged over 10 percent as of September 11 on BSE. related news Sensex at record high but midcaps likely to generate wealth; 20 stocks to bet on Technical View: Nifty forms Doji pattern, record high likely if index closes above 12K Sensex hits a new high, 4 factors that could … [Read more...] about 20 paper stocks up 10% since Aug 15. Will it hold?