“Any cut in the interest rate will further fuel the lending side of the business and that is the reason why we have picked it up. From a target perspective, around Rs 450 is the target we are expecting on Poonawalla Fincorp from at least a year of holding. Price to book, it is expensive but that is how it is with the companies which are growing at a scorching pace.”
“Sai Silk is self-funded. They do not need to raise any great capital. They do not need much capital. On any store level or even at the company level, they can easily do 20% plus ROE and the growth potential is quite well laid down. They had opened around 19 stores last year which are likely to contribute in the current year and they will be opening a similar number of stores in the current year also.”
In 2023 new listings on EGM increased: 27 new IPOs in 9M23 compared to 17 in 9M22. From our Coverage, the second IPO of 2023 and third in terms of marginality was TMP, while.
The strength of wage growth, asset price inflation, and the lingering impact of the post-Covid dole-outs have kept household demand above potential, thereby sustaining the high inflation. Additionally, the federal government fiscal expansion, rising 61% YoY to $1.52 trillion (Oct22-Aug23, projected at $1.9 trillion in FY24), is creating another round of demand impulses.
This might make it imperative for the government to increase the tax burden on the corporates, look for other avenues like higher dividend payouts from PSU companies and RBI, or accelerate the pace of PSU divestment and use the balance sheets of PSUs for this purpose.