Ampersand

Ampersand: Seizing the Mobile Banking Opportunity - Bank Systems and Technology

2011-12-16T21:54:00.000-08:00

Ampersand: Seizing the Mobile Banking Opportunity - Bank Systems and Technology

Seizing the Mobile Banking Opportunity - Bank Systems and Technology

2011-12-16T21:53:00.000-08:00

Banks have come a long way from delivering services via the lone brick and mortar channel to a multiple channel strategy, where optimized individual channel strategies are key to ensure a high uptake of service offerings. A key piece in the overall channel strategy is mobile banking, which has been in focus in the recent years owing to increasing smartphone penetration and availability of high speed connectivity options. Click here to view an article authored by me along with a colleague, published in the December 2011 edition of Bank Systems and Technology magazine

Over reaction to quarterly numbers and other events

2011-07-15T10:16:00.000-07:00

The last few days have once again highlighted the malaise in the Indian equity markets - that of self styled market experts appearing on business channels and offering their (seemingly) unbiased opinion on any and every listed company on the NSE and BSE, often butchering the stock that just declared quarterly/half yearly/yearly numbers. The best of equity analysts in India too may not know as many stocks as these folks do, owing to the restricted coverage universe at each broking firm. But these market experts do!!

The Indian regulator introduced the concept of quarterly results as a check for erring companies and also as a move to improve reporting standards, in line with international practices. But unfortunately, self styled experts have been using these results releases to butcher a stock or lift another to the stratosphere, all to satisfy their own whims and fancies, misguiding gullible small investors in the process. Though the concept of offering guidance about future performance could be held partly responsible for the expectation build up, the role of operators disguised as experts is higher.

The knee jerk reaction to results declared this week, the unwarranted and illogical upper circuit closures of SKS Microfinance, in response to the draft Microfinance Institutions (Development and Regulation) bill are a case in point.

Going by the way business news channels flash in centralized dealing rooms (CDR's) at broking firms and with gullible investors watching their demi gods dish out stock prescriptions, it remains to be seen how quickly people would identify the noise and filter it out.

Earlier the better.

Desperate house calls for stock recommendations

2010-02-11T06:01:00.000-08:00

Saw this article on Economic Times, and thought it made good sense in the current scenario. Read on....

It is that phase of the bull run when analysts are unable to justify the valuations of shares by conventional ratios. Nevertheless, stocks have to be sold to eager clients, and there has to be some ‘story’ or ‘fundamental’ hook to it. As the joke goes, if a stock can’t be justified as a good buy based on the traditional price to earning multiple, then market it based on its price to cash earnings multiples.

If it still doesn’t look cheap, try the enterprise value to operating profits (EV/EBIDTA) ratio. If that doesn’t work, look at the market capitalisation as a multiple of sales. If that too fails, point out the “embedded value” in the stock in terms of holdings in group companies and other investments. And if everything fails, the scrip can still be marketed as a “concept stock”, only for the discerning investors with a long-term horizon. But above all, get the client to buy it.

Source:Economic Times

Broadband in India

2010-02-01T09:12:00.000-08:00

Forbes India has a good article on Broadband in India in its recent edition.

For quite sometime now, a lot of industry experts and analysts have cited high pricing as one of the deterrents behind the low broadband penetration. High bandwidth pricing is no doubt one of the reasons, but there are other contributors as well

Local loop unbundling: In India, the last mile connectivity is controlled by the state owned operators, and unless the Government of India forces these companies to open up, newer operators will have to invest more money in last mile connectivity. Read more about unbundling here, and how OFCOM of the UK had opened up last mile access here.

Increased PC penetration:An increase in PC penetration would aid increase in broadband connectivity

Development of high quality, relevant, local content: The need of the hour is to develop more local content and deliver it on the internet. One of the segments is online coaching - especially for entrance exams like IIT and IIMs.

VoIP and new technologies: The Government should take immediate steps to legalize VoIP. Operators like RCOM, Bharti Airtel could consider delivering broadband through satellite - using their DTH platforms.

Click here for the latest subscriber numbers

Mangalore/Mangaloreans

2010-01-30T10:01:00.000-08:00

Was surfing the net today afternoon, and here's what i found on Amchigelas from Mangalore ( Konkanis). Many of the fellow Amchikelas ( aka dorke, kokke 's) must have got this as a forward at some point or the other. So, please add if you have any more of this one!!!

Identifiers for an Amchikela from Mangalore
Credits : Pradeep's Blog

He/She is always bothered about the neighbor’s issues and starts spreading it to the other houses – Panchadik.
An amchigel guy goes with a gal on his motorbike and happens to go past the temple square by mistake. When he reaches home he is grilled on who the girl is and what he was doing with her near a temple.
Temple is always the first priority and all other work is only done at the last minute.
A lot of the family members are from one of the Canara Schools in Mangalore…
All ‘Theru’ in Dakshina kannada have to be attended by law.
All sentences in konkani begin and end with “KASA VARSHIK RE!!!”
A lot of other words like ‘MaaDE, VOCCHUN MAR RE’ etc have to be included in between a conversation.
‘Bibey upkari’ is a solid form of Amruth, you have attained nirvana once it is consumed.
‘Dali thoy’ is eaten with additional sound effects.
You have to have a Sharada Calendar in your house or else you will not know when the Kodial theru is!!!
Your second cousin’s wife’s sister’s son is having a moonji, you have to make it even if it means changing three buses. You reach just in time for lunch, which means you have attended the program.
All exercise books should be bought from School Book Company to show your loyalty to your caste..
The more you eat the more healthy you will be; food has to have its quota of excess ghee. Cholesterol is unheard of.
If an amchigel has some work and if someone asks him ” Kai vath re??” he comes back running. Legend says that one should not ask such a disastrous question before any work is going to get done.
All servings are either less or more than 3 spoons.
If one hasn’t tasted the bajje from that car street Balli shop and also hingashtak = major problems to the power infinity
Panchadik during the waiting process before the thera jevana is mandatory and panchadik is about some person X who is of no relation to the speaker, however, speaker gets tensed and has double the share of food.
All college going students are first asked whether they study in KREC or MIT… other colleges don’t exist.
Every sunday at least one person in the family has to go to Tajmahal Hotel. All the effort is to just have a cup of coffee .
‘Keerlu’ is eaten slowly…every bite is tender so that one can taste every part of the piece. Come on its a seasonal delicacy!!! …eat with care.

IRB Infrastructure - Focus is the key word

2010-01-30T03:03:00.000-08:00

Established in 1977 IRB Infrastructure is a focused play on the roads sector. The company has around 15 projects measuring around 1,000km in its kitty including the Mumbai Pune expressway and the stretch comprising Mumbai-Surat-Bharuch. Of the 1,000 km, around 700km are generating revenues already. The company also has a 7.2% market share in the Golden Quadrilateral project. Click here for a recent presentation, and here for an interview of MoneyLife with the Chairman, Mr. Virendra Mhaiskar

Key factor: The company makes money through construction margin during road construction, and earns toll income during the operational phase

The GOI has stressed on development of highways ( both national and state) as one of its priorities, and given the impressive track record of IRB till date, it should be a multibagger.

Larsen and Toubro - To sell or not to sell?

2010-01-29T23:02:00.000-08:00

A couple of days ago, a friend of mine expressed his concern over the Q3 results of Larsen and Toubro. He had booked his profits partly, looking at the downfall in the stock post the results. Below is my response to the same.

Booking profits partly is always good, especially in cases where the market see-saws like mad. Case in point is the way the Indian markets have been behaving for the last 10 days.

Having said that, L&T is a conglomerate which is too big to fail and would create enormous value in the coming years. The company had planned an IPO of its IT unit L&T Infotech but had to cancel it when the markets tanked all the way to 8k levels. It has a good number of companies running successfully in the JV format , and also bought DBS Chola's Mutual Fund arm in Sept 2009 through L&T Finance (Link)

Within the next couple of years, the company would be take its Infotech and Finance arms public, creating value for existing shareholders. A look at the lines of business, financials, and rich history of paying dividends would qualify this as a stock for long term investment.

Read an analysis of the Q3 results of L&T here, and also what highly rated analysts from IL&FS and Kotak have to say on the stock

Hold at the current levels, and accumulate on every decline is what i would suggest