Holcim and Jet Airways continue to test India’s commitment to robust corporate governance even as the Rupee’s shallow provenance means that the Central Bank is still per force holding Indian finance sector to ransom and channelising Gold Trade to exports. Talking just about India further , the Holcim deal ‘s 7.4 /6.6(after funding Holcim into Ambuja) share exchange ratio shows also the potential exits for Foreign investors not looking to be good governance leaders that cannot be covered by loophole based laws from a nearly dozen regulators, instead of a full investment into India”s new priorities much like relayering a road than taking each pothole out with a “minimum valid quantity” of tar and a pass through roller every time it rains
Infrastructure investment aside there are other parallels with the missing wholesomeness in India’s corporate governance story here its policy leadership and a crisis less 2008 fail to cover the basic lack of provisioning for Good business practices, Good Employment Practices and Good Investor practices that remain yet valid shareholder criteria in India to find out stories head and shoulders above the others who will thus sustain better growth and power. Ideas that are good on all three eigenvalues are probably not overvalued but some (Havells , Heromotocorp ) have been disproved for sustenance from their consumers in their expectations much like Jubliant Foods that could grow higher than 50% for a year or so only and one round of Capex subdued the tiger in it unlike previous examples at Bharti and HUL in the eighties
India’s triage of these Business practices, investor practices and Employment practices is unique despite there being global movements in the three areas as in india there are barely a Dozen from which the Top 10 lists of employers, investments or businesses to corner among the variegated field (motley crowd) of unlisted, unlisted MNC, Globally owned, Indian Globally owned, outward investing (Bharti, ONGC) Indian Global , Private, Private-Public (ICICI, SBI), Public (Coal), internet only ( ecommerce) , Private Equity, Cooperative , social or other holding structures that dot India’s Business landscapes. Some sectors like india’s Higher Ed defy any such categorisation as well and have no link to the Corporate ends of the trail to synaptically make the neurons work together.
Hardly 10% of our “interest sample” is even listed or accessible to investors precluding complete sectors like Advertising, Information etc instead of the global sample of a few mutual or private businesses which are nevertheless well-defined with market pricing control policing them much more effectively than any government However shorting private banks like Axis and ICICI Bank in today’s conditions is a n unforgivable error brought on my such extraneous pressure in the Economy as such banks losses on short funding squeezes are eminently reworkable into their secular 20%+ topline and sequential bottomline growths except for the immediate quarter ICICI Bank esp seems at a bottom at 930 levels and the trader short interest is basically an overwrought hedge for knowing that their is no lower mark than 5980
CNBC’s The Firm ( Menaka Doshi) and citizen denizens like Anil and others defending minority shareholders are a new breed and barely survive in the noise on promoter manipulation, Sahara and Jet’s revenue headquarters migration to Abu Dhabi. We wish all of them the best
All said, Bank Nift’s holding at its bottom, there are no ears to speak of an if you still think the above scenario should somehow affect India’s valuation further negatively, give me a call and I’ll try again.
ITC results will be an eye-opener as Yogi leaves and ITC indeed transitions back to Tobacco led Consumer behemoth, making profits at Ashirwad and Sunfeast( I hope! for my noodles’ sake)
Wockhardt is still in a bigger soup for its digressions barely days after investors returned to the stock and Bajaj Auto is the only one among auto majors whose Export story has worked throughout from 2006 onwards without a break despite the challenges
- Bank Results season (India Earnings) : Yes Bank starts back from 390 levels despite overnight straits (awardz.wordpress.com)
- Holcim rejigs India structure; tweaks holding in Ambuja, ACC (news.in.msn.com)
- India Morning Report: The future path to robust corporate governance was lined with crises (awardz.wordpress.com)
- ACC becomes Ambuja Cements arm (dnaindia.com)
- Ambuja Falls the Most Since 2008 on’Surprise’Holcim Rejig (bloomberg.com)
- India Morning Report: Tentative market ready to reward India’s uniqueness to new 6150 channels (awardz.wordpress.com)