Enough! Too much pessimism & slowdown-talk are only going to push many of us to either exit or into inaction. Starting this 'positive' thread to periodically share sane voices who have seen multiple cycles & have rare ability to connect dots and see beyond these minor blips. 1/n
2/n Kick-starting the thread with Mr. Prashant Jain, CIO, HDFC AMC. A 34-min interview covering- why corporate earnings shall grow despite economic slowdown, why valuations look optically high but they aren't, views on Auto, Banks, IT, Pharma, Utilities:
3/n "Ex of consumer discretionary & staples, market valuation is cheap in terms of price to book & near all time low in terms of Mkt cap to GDP. Corporate tax cut makes India very attractive; to revive CapEx cycle & create jobs" - Prashant Jain, HDFC AMC
4/n Logistics has been a major bottleneck for India. I often heard promoters grumble “To move the material from India to China costs us less than Rs 1,000/ton, but to move the same material from the domestic port to the plant costs us Rs 3,000/ton.” Why?
5/n For each state a truck crossed, there were multiple halts for octroi, sales tax and RTO, wasting hours and sometimes days at the check post. Indian trucks were covering about 300km a day, much lower than the global average. Not anymore..!
6/n Slowly but surely removal of state checkposts due to GST has led to major efficiency gains- the trip duration is down 20-50% reducing logistics costs substantially. A thread where so many transporters & business owners vouching for this:
7/n Rs 81,500 Crore Dedicated Freight Corridor shall further reduce the journey time as well as costs especially for bulk commodities like coal, metals, minerals, cement etc Some phases to be completed over the next couple of years, see project status here dfccil.gov.in/dfccil_app/Pro…
8/n An Absolute Must Watch - "A Cyclical, Not A Structural Slowdown" by Neelkanth Mishra @ Masters at Work @CFASocietyIndia @neelkanthmishra
An interesting Q&A with S Naren, CIO of ICICI Pru around value investing and promising themes/opportunities
m.economictimes.com/markets/expert…
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