LIC’s dominant size in the industry – cornering over 60 per cent market share – is also a problem, Emkay says, as it hides operating challenges. LIC’s dominant share in the single-premium group fund management business artificially inflates its market share and deflates some of its cost ratios, it said.

“Most of the Indian technology companies are business to business companies. B2B companies feel this after a lag of three to six months. It is a no-brainer that if interest rates are going to go up as sharply as they are predicted in the US, combined with monetary tightening and some slowdown in the US economy and some squeeze on the margins of US corporations, there will definitely be cutback on the IT spending and that will hurt these companies.”

“The latest block deals selling 2.8% does not impact the majority control that the promoter has and it is just the simple small minor stake dilution which was in line with certain restructuring in the family trust. No impact whatsoever on Bata India., says Gunjan Shah. The Bata India CEO also talks about how an improved product mix and a move towards “casualisation” and “sneakerisation” has aided in improving margins.”

“There are elements of protection annuities where we are working very hard with the Axis Bank to make sure that it provides good momentum to Max Life Insurance. There are synergies that we are looking at across cost saving initiatives, procurement, people movement etc. We are just trying to increase the level of synergies across different verticals.”

According to the brokerage, the pressure on margins faced by manufacturing businesses along with wage inflation in the IT sector had been offset by the earnings outperformance shown by the banking, financial services and insurance (BFSI) sector.

The company has recently gained new capabilities with its JV with Vopak, which enables the company to increase the products it can handle across liquids and even new gases like ammonia and butadiene, Nomura India said.

Oil stocks slipped as crude prices fell on reports that Saudi Arabia may boost production in response to urging from the United States. An OPEC+ meeting was also eyed for production clues.

As of 31-Mar-2022, promoters held 0.0 per cent stake in the company, while FIIs held 25.21 per cent and domestic institutional investors had 12.94 per cent.

Debt plays an important role in a portfolio. It can act as a cushion in periods of significant market volatility, holding steady or falling substantially lesser than equity (e.g., 2008-09, early 2020, etc.), generate regular income, and provide attractive investment opportunities particularly when real (or inflation-adjusted) interest rates are above long-term averages.

Creador is a private equity firm focused on long-term investments in growth-oriented businesses in Southeast Asia and South Asia.