Valuenomics Research

Negative Interest Rates "By putting downward pressure on interest rates, the Fed is trying to make financial conditions more accommodative - supporting asset values and lower borrowing costs for households and businesses and thus encouraging the spending that spurs job creation and a stronger recovery." - Janet Yellen What is Interest Rate? The interest rate is made up of Expected Inflation + Real Interest Rate. Interest rate must cover loss of purchasing power and reflect current over future consumption Like we all know, Interest is something we pay to the lender to cover the risk and inconvenience of not having their money with them. Risk encapsulates credit and liquidity risk.  For example, Person A (Borrower) wants to borrows  100,000 loans from ABC Bank; the interest rate is 7%, Tenure of one year. At the end of one year, A as to pay principal + Interest, i.e., the Interest of 9,000 (9% of 100,000). So A as to pay 109,000. So this is the usual scenario of the favorable i...

Q1 was a pandemic quarter. The emphasis was on employee well-being, capital safeguarding, liquidity management,  business scenario planning, opex management, collections capacity augmentation, customer propositions, business transformation framework, and, lastly, a calibrated restart of business as the country started to reopen.   The company is holding it steady! There was a noticeable accident in the 2008 Mexico City Learjet crash caused due to wake turbulence. Bajaj Finance is holding steady even in turbulence times. Asset Quality: Quarterly Update of the business: - NII, Net Profit, and Asset Quality are stable. - 15.7% of AUM under moratorium. The moratorium is in line with competitors. - Consolidated assets under management are at 138,055 cr's V/s 128,898 cr's. Growth of 7% - Consolidated profit after tax is at 962 cr's V/s 1,195 cr's. Which as seen degrowth of 19% - Contingency provision off 1,450 crores for COVID·19, which is 10.8% of consolidated moratorium boo...

About two decades prior, the Bangurs- Promoters of Shree Cement were having a tough time running a two cement plant. This was in 2000-2002 after the market had experienced a four-year drop. Having to deal with excess capacity, their company was hardly making any money. To compound its problems, it had borrowed money at 19.6 percent to fund expansion. The circumstance deteriorated to such a degree that Bangur resorted to sell the plants and pay off the lenders. They decided to look for a prospective buyer. They found one in a French cement Major Vicat, who was looking for a presence in India. The papers were to be signed on the next day but at the last moment the deal didn't go through.  Post that was a history of events with an amazing show of efficiency and management integrity due to which Shree cement is one of the leading manufactures of cement having a key presence in North India with 40  MTPA. So let's understand the dynamics of the cement industry . India is the second-...