ASSET LIGHT

As work-from-home trend declines, flexible office spaces work for employees and companies

Providing convenience and flexibility for employees on one hand, cost-effectiveness, and asset-light models for employers on the other, coworking/managed spaces are booming. Demand for such spaces is soaring in large metros and Tier-2 cities alike as companies tighten return-to-office rules.

Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 39%

Just before the start of the final phase of the general elections 2024 was to take place, there was a clear indication that it is bulls who are in control of the market. There are no two opinions, that a continuity in policy making will make the markets move upward very sharply. A glimpse of that will come in Monday’s trading session, when the impact of the exit poll result gets played out. So, with the base case assumption that the policy making will continue, we take things forward but continue with our principle stand that If one is taking fresh exposure to equity, ensure that there is some level of quality as far as the business and fundamentals are concerned.These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

'Banks need to look beyond bulk deposits to fund loans': RBI

The Reserve Bank of India (RBI) Thursday said that banks must reduce their reliance on wholesale deposits to fund loans and be watchful of the risks associated with their advances and trading exposures amid interest rate fluctuations.

Reduce reliance on wholesale deposits to fund loans: RBI to banks

The Reserve Bank of India (RBI) advises banks to reduce dependence on wholesale deposits and manage risks from loans and trading amid fluctuating interest rates. Regulatory measures to curb consumer lending and diversify deposit sources are emphasized. The RBI plans to issue new guidelines to enhance financial stability and asset quality in FY25.

Staying with good business & strong management: 5 largecap stocks from different sectors with upside potential of up to 37%

After a phase of calm, volatility is back on the street. Somehow word volatility got associated with bearish trend, while it might appear strange to some, the fact is that even volatility has a bias and that can be toward bulls also. That is the reason why in this volatile phase, Nifty made a new high. So, rather than fearing a word it is better to understand it. Similarly when it comes to investing, it is important to understand that while events can impact the price in the short term. In the long term, things which matter is the underlying business, strength and quality of the balance sheet, ability and experience of the management. Whether it is pre-election or post election, always have a look at the above three when investing your hard earned money.

Capital and asset quality of banks, NBFCs remain healthy, says RBI in its annual report

The Reserve Bank of India (RBI) released its annual report on Thursday. It highlighted that the capital and asset quality of banks and Non-Banking Financial Companies (NBFCs) have stayed robust. This has fostered growth in bank credit and domestic activity for the financial year 2024.

India will continue to be a 'buy on dips' market: N Jayakumar

​My own assessment is that, especially even as investors, the local investors have now got a higher percentage of company holdings than foreigners. To my mind the big takeaway of the last five years. has been the pre-eminence of the Indian retail investor, unspoken, unsung, unknown investor through SIPs and through his investments and largely through mutual funds has remained an increasingly important constituent of the markets.

Strong balance sheet & long runaway of sectoral growth: 5 largecap stocks from different sectors with upside potential of up to 37%

When investing in any stocks, be it a large, small or medium cap there has to be one strong reason why one should invest in. It could be a strong balance sheet, strong brand, long runway of growth for the sector. Because if one of these are present in a company then the short term volatility in the market does not matter. They come and go and finally these stocks are able to deliver returns. Especially at a time when the index is forming a new high and sentiment all bullish, it is more important to stay cautious because however strong a bull run might be, it has phases of correction like the one we saw in March and as recently as last week. If one is staying with quality stocks, the probability of faster recovery when bulls are back is high. We look at 5 stocks from different places where either one or more of the three things are present.

Bitcoin Pizza Day today: Mudrex CEO Edul Patel explains the significance

Mudrex celebrates Bitcoin Pizza Day in Bengaluru by distributing pizzas to children, startups, and food lovers, partnering with WeWorks and Zomato. Edul Patel shares insights on Bitcoin's journey from the first real-world transaction in 2010 to current regulatory trends, including SEBI's stance.

Wait for Awfis Space Solutions to deliver stable profitability

The company has an asset-light business model and is debt-free. However, limited operating history, consistent losses, scalability of business, and sustainability of long-term contracts with clients are a few concerns.

Is it wise to invest in the largecap category now?

​Small & midcaps have been giving double-digit returns in the past few years. It has led to many investors running towards the two categories relentlessly but it does not mean that the footing of large caps is not strong enough.

Stock picks of the week: 4 stocks with consistent score improvement and upside potential of up to 29 %

It is after a long period of time that both bulls and bears are visible on the street at the same time and waiting to make the next move. A strong directional move will only come after election results. Before that it is very likely that the market would stay in range bound mode. During this period it would be better to stay with selected stocks, have at your portfolio and do a rejig with focus on fundamentals of the sector and the stocks. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

Stay light & keep some cash handy; buy only after the event is over: Anand Tandon

Anand Tandon provides insights on market dynamics, banking sector performance, consumer trends, and investment strategies amidst evolving economic landscapes and global uncertainties, suggesting cautious optimism and strategic planning for future opportunities.

Bearing the brunt today, but good for long term: 6 stocks from the financial services sector with upside potential of up to 30%

For all those who were again thinking why the financial services sector stocks are leading the recent phase of decline. A look into FPI holding patterns would throw the answer. It is the financial services, including banks where FPIs have the maximum exposure, so if they are booking profit, the first round of selling is bound to come in the sector where they have maximum holding.But there is another part to the story, which is when they come back, it is the very same sectors where they buy the first, because financial services and banks are the best proxy play to GDP growth. Also the fact that the majority of these stocks have ample liquidity plays an important part in the kinds of strong moves these stocks see.

Diagnostics chains at inflexion point: Emkay

"With competitive intensity reducing after the emergence of the new normal post-pandemic, we believe Indian organised diagnostics chains stand at the cusp of inflexion," said the firm's analysts Anshul Agrawal and Eshan Bhargava in a client note."

ADIA, KKR book a $1.5b space in Reliance Retail warehouse

ADIA and KKR invest $1.5 billion in RRVL's warehousing assets, managed by RPPMSL. RRVL transfers assets to RLWH. Financial details include debt, NCDs, and equity. RRVL's growth supported by investments and strategic partnerships.

Combo of capital heavy & capital light biz to drive operating leverage, margin expansion: Puneet Chhatwal, Indian Hotels

Indian Hotels, led by Puneet Chhatwal, showcases robust growth through strategic new contracts, capital-light models, and diversified top line expansion. The company's focus on operating leverage, digital enhancements, and new business segments sets the stage for continued success in the hospitality sector. He says: Indian Hotels' combination of capital heavy and capital light which is today at 40-60 and could grow to 30-70, 70 in favour of capital light,

This is the time to have more asset-heavy stocks & sectors. Ishmohit Arora explains why

Ishmohit Arora discusses the shift from asset-light to asset-heavy businesses due to inflation. He analyzes sunrise industries, power transmission capex, and advantages for incumbents in asset-heavy sectors during inflationary periods. Arora says: "Asset-heavy businesses are sitting on operating leverage, financial leverage, and a non-linear jump in profitability will be seen."

Capital availability, charging infra & batteries still huge constraints for ​Vertelo platform: Abhishek Poddar

We will be partnering with various folks to enable the right availability of the batteries. And constraints are in terms of technology, obsolescence risk and what happens to the residual value. So we are working with our partners.

Fundamental Radar I 5 factors make Lemon Tree a compelling bet in hospitality space: Kruttika Mishra

Spot the meta city lights

Resurrected residentials During Covid, many predicted the death of global cities because many residents retreated to suburbs and small towns to work remotely. But far from being eclipsed, global cities reinvented themselves with the rise of meta cities - a web of cities that operate as a distinct unit, but are attached to a significant, often global, economic hub.

Cappella Educore secures $200m commitment from Alta Capital

An education specialist platform, Cappella Educore has secured an investment of $200 million from Alta Capital and in the next three years this will help the company grow a portfolio of around $550 million. Currently, Cappella Educore has 13 schools as part of its portfolio and plans to add 15 more and aims to be listed as an infrastructure investment trust.

Being light on assets gives hotel chains a lift at the bottom line

In an asset-light model, instead of owning properties, hotel companies adopt the franchise route thereby reducing capital investment. Between FY15 and FY23, the average operating margin before depreciation and amortisation (Ebitda margin) of the sample hotel companies improved to 34.6% from 17.6%. The share of rooms based on management contract (asset-light model) during the period increased to 40% from around 15%.