Kind of sure this will get squashed. Doesn't make sense.

This reminds me of the socialism example where every student gets the average marks in the class, irrespective of their real score. And we know the outcome.
It takes time, effort, networking, reputation over years and proprietary research for relevant questions (beyond the concall). Don't see any reason why all of it should be made public.
To everyone celebrating this or bashing a counter view, hope you read/ attend the earning calls. Information availability is clearly not a challenge in last few years. This should increase participation of "serious" retail investors though.

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More from @abhymurarka

18 Mar
1/9

Last 2 weeks:
ICICI Pru 📉-15%
HDFC Life📉-7%
Max Life📉-6%
SBI Life📉-3%

What's bugging private Life Insurance companies?
Read on if you are invested (or interested) in Life Insurance:

A short thread🧵
2/9

How to IPO LIC - This was a topic covered in the first Equity Capsule newsletter (read extract shared).

Historically, LIC has had lower profits & NW due to higher payouts to policyholders vs peers. But post recent amendments to LIC Act, they are in line with listed peers. Image
3/9
What's changed?
Earlier LIC treated payout for both policies at 95%. Now it has lowered mandated distribution of surplus from 95% to 90% for Par products (ULIPs) and 95% to 0% for Non-Par (Term Ins for Protection).

Link for Par vs Non Par products:
lifeinsurance.adityabirlacapital.com/articles/life-… Image
Read 12 tweets
24 Apr 20
Most important topic that is hardly discussed!

🚩At 4% fiscal deficit and 55% debt to GDP, India has a sovereign rating of BBB- (just one notch above junk)

💲At 18% fiscal deficit and 150% debt to GDP, USA has a sovereign rating of AAA

Something is rotten here.
To clarify a misconception:

The limited Covid response stimulus in India (1% of GDP) vs US (10%) or Japan (20%) has less to do with risk of Fiscal deficit but more to do with fear of stagflation if it doesnt bring back demand. One notch downgrade & we are junk = FDI/FII sell off
A BBB- rating is the last Investment grade rating and BB+ onwards classifies as non investment grade. Global funds of funds are not mandated to invest in sub investment grade sovereign papers. Understand the flux before criticizing.
Read 7 tweets
22 Apr 20
Highlight of the day - Facebook acquired 9.99% stake in Reliance’s Jio platform for an investment of Rs 43,574 cr valuing it at Rs 4.36 lakh crore. That's 56% of market cap of RIL (~7.8 lakh cr) – huge right!!

A simplified thread on the deal, Jio platfrom and competition.
1/n
2/n

Landmark deal:

📝Largest investment for a minority stake by a technology company ANYWHERE in the world
📝Largest FDI in the technology sector in India.
📝Values Jio Platforms amongst the top 5 largest listed cos. in India
📝Improves India's $ reserves & fiscal balances
3/n

Deal rationale - Facebook had $50B of cash on B/S making practically no money. Deploying $5.7 bn in Jio gives them broader access to India and India 2 retail users. For Reliance, it strengthens their consumer wallet share and brings big ability to cross service clients.
Read 23 tweets
7 Apr 20
Quick snippets from ICRA's note on Covid-19 impact across Indian industries. Looks at it from 5 vantage points.
👇
1. Domestic Demand Slowdown

Govt. curtailments + risk aversion to have short-term repercussions on domestic demand; recessionary trends possible in longer-term
2. Global demand Slowdown

Rapid spread of pandemic across the globe leading to country-wise lockout, and fears of an impending recession to have impact
across multiple sectors.
3. Supply Chain Impact

Supply disruptions of key imported raw materials in electronics, renewable energy, automobile and pharmaceuticals sectors
could adversely impact production even post lift of the lockdown.
Read 5 tweets
7 Apr 20
#Goodreads for today:

1. Thinking beyond the pandemic by @svembu. Increasingly fascinated with his thoughts and ideology. Here he writes about the overvaluation across asset classes and his disdain for financial absurdities.

2. Kishore Biyani falters again
Last week, KB almost lost majority control of Future Retail, but got saved by a court verdict that some say goes against the tenets of free markets. Good for understanding perils of pledging shares in a down market (Paywall)
themorningcontext.com/kishore-biyani…
3. There is always something to learn when @_kirand writes, especially with the "intellectual honesty" this seems missing in the industry.

The angst/ truth of knowing, not knowing and everything in between.

kiraninvestsandlearns.wordpress.com/2020/04/06/the…
Read 14 tweets
6 Apr 20
#Goodreads for today:

1. Interview with Riyaaz Amlani who runs some popular #restaurants in Mumbai. Covers everything to know - the depth of bleed, skewed cost structure, low affordability in India, unit economics, Covid impact, tax issues (no GST credit)
outlookbusiness.com/amp/enterprise…
2. Will India's Real estate prices finally correct?
Anarock expects an annual decline of 25-35% in home sales (top 7 cities) in 2020. Property prices may come down by 10-20% across geographies, while land prices could see an even higher reduction of 30%
livemint.com/market/mark-to…
3. STRONGLY recommended

"Signalling as a service" by @lehrjulian
Most of our everyday actions are some form of signalling or status seeking - brands we choose, MBA degrees, charity, etc. And how smart businesses leverage this.

julian.digital/2020/03/28/sig…
Read 11 tweets

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