Elson K

Investor

[Elson K @Elsonk94K]

@ActusDei @ManiWealthHQ @ProteanEgovTech How to set 100% equity in protean app? I can’t find it. @ProteanEgovTech @ActusDei

[Raghav Chadha @raghav_chadha]

My Demand: Make Long Term Capital Gain TAX on Equities NIL for individual investor.

I welcome the hike in STT (security transaction tax) on derivatives as it can curb reckless speculation. Nearly 90% of retail investors lose money in F&O, turning markets into gambling.

When STT was originally introduced, LTCG was zero. But now with both STT and LTCG in place, investors are disincentivised.

I urge the govt to abolish LTCG on equities for individuals, as done in Switzerland, Singapore, UAE & others. This will boost household wealth, reduce speculation, and shift savings from gold & real estate into equities.

[Elson K @Elsonk94K]

@prabhakarkudva Is there a company with 100 PE that can do 50% CAGR of it’s eps now?

[Dilip Kumar @kmr_dilip]

India was once called a nation of call centers and it sounded like an insult. But quietly, it trained millions of young Indians to speak fluent English and dream beyond their hometowns. That was phase one.
Then we became the IT back office of the world. And it created a generation of engineers who could write code, manage complex systems, and deliver at global scale. That was phase two.

Today, we’re in phase three. Indian startups are solving for India and it looks chaotic from the outside. These are signs of a country solving its own problems first, before solving the world’s.

Sure, we should go more deep tech and we will i think. But first we need more patient capital, more research led universities & more talent density. Deep tech ecosystem can't be built in a hackathon. It will be built by million engineers who get obsessed in solving billion daily problems.

[Uday Kotak @udaykotak]

My year end musings: India at 77.
1. Go for growth. Let’s get enterprise and animal spirits firing.
2. ROTI is Return on time invested. Go relentlessly for productivity.
3. Shun protectionism. It may benefit in the short term. Long term it makes us uncompetitive.
4. We need a plan to eliminate the current account deficit in reasonable time.
5. Increase investment in defence. Power is power. Safety is prerequisite for prosperity.
6. Continue with gentle and steady fiscal consolidation from here.
7. Avoid over regulation and micro management across sectors. Zero accident policy is high risk to growth.
8. Respect free and fair markets. Intervene only if there is evidence of bubbles or manipulation.
9. India is 1.4 billion people. Let many flowers bloom.
10.We must get out of having amongst the most polluted cities in the world. Let us walk the talk.

[Shyam Sekhar @shyamsek]

I am an admirer of #Asianpaints as a company. I grew up hearing from my grandfather about how Champaklal Choksi built the company. When he passed away and his shares were sold to Akzo Nobel, it appeared the company was going to become an MNC. But, it already had all the essentials of a great MNC. There was no need for an MNC to own it. It could remain Desi.

To his credit, Ashwin Dani worked the Indian political system, and somehow stalled the move, despite the best efforts of the Investment banker, who was a formidable and feisty member of his own tribe. Asian paints stayed an Indian firm. Reliance has been an unseen player in this company owning 5% stake in it through one of its numerous investment vehicles.

The Asian paints fable as it was authored and mutated was an exaggeration. It was apocryphal, rehearsed and wantonly done. It lacked depth, understanding and analytical heft. It was based on licentious thinking, allegorical evidence and creative excess. The company’s competitive position, its relative pricing power, the power of its branding were all blown out of proportion. It was primarily a beneficiary of disciplined and rather soft competition. The fable did not factor in the entry of strong competition.

When strong competition entered, the whole edifice of story telling came apart. The reality is not going to live upto the story telling. This has a lot to do with the dynamics of the paint industry. The dealer is a creature of income, an inducer of purchase and an influencer of painter loyalties. He was earning the least margins on Asian paint products. He was using the margins earned from SME’s to fund the Asian paints business. Now the business of SME’s has collapsed with the entry of Birla Opus, JSW paints and the rise of midsized players like Indigo.

It will become impossible for dealers to push SME products the way it happened in the past. Dealers are forced to push Birla+JSW to customers. As Birla+JSW offer better terms than Asian paints and are also getting decent acceptance with painters+customers, this is triggering a shift in dealer loyalties.

To counter this, Asian paints has done a very credible outreach, offered better pricing and tried its best to minimise the damage. This will lead to more aggressive sales generation at lower margins. The evidence is there in the Q2 results.

The decision of Akzo Nobel to exit India by selling its Indian business is further threatening to add more competitive intensity into the paint industry. Akzo Nobel is a sleepy MNC that allowed Asian to gain domination of the entire premium paints segment with least resistance. But, its own brand equity is still very much intact. If the Akzo Nobel business gets acquired by Birla or JSW or A-co, it will further put tremendous pressure on the Asian paints biz. This will start showing in the premium segment, which is still to see deeper impact yet. The battle will then become market wide and this will significantly weigh on the pricing power, margins and volumes of Asian paints.

Asian paints may now be in a tough spot. It may need to buy Akzo Nobel at a very high valuation to ward off the threat from the Birla-JSW duo in the premium segment. Needless to say, this will be a very expensive buy and the markets may not like it at first look.

The story-telling and narratives which were peddled on Asian paints were very raw, unthinking and superficial at so many levels. We were varnishing the truth all along. We completely ignored industry structure changing dramatically, competitive intensity transforming permanently and the industry becoming completely dominated by large organised players. We failed to foresee competition from big players, heavy investment in the industry and the impact of the industry growing capacity way ahead of demand. This will take force start turf wars in every segment of the paint market.

Even a champion like Asianpaints is now on a sticky wicket. The wet paint may end up drying a lot faster.

[Elson K @Elsonk94K]

@shyamsek Congratulations Sir

[Aditya Kondawar @aditya_kondawar]

Who is the Father of the Indian Stock Market?

[Chetan Bhagat @chetan_bhagat]

Indian Elections are like IPL, no matter what happens, ultimately an Indian team wins. Always remember that!

[Supriya Sahu IAS @supriyasahuias]

A beautiful elephant family sleeps blissfully somwhere in deep jungles of the Anamalai Tiger Reserve in Tamil Nadu. Observe how the baby elephant is given Z class security by the family. Also how the young elephant is checking the presence of other family members for reassurance. So similar to our own families isn't it
Video @dhanu_paran for @tnforestdept #elephants #TNForest

[Mani_998 @998_mani]

@shyamsek Unilever PLC Market cap $100b
Hindustan Unilever Market cap $60b

[Va Nagappan வ நாகப்பன் व नागप्पन 🇮🇳 @nagappanv]

Rich should pay taxes - whoever it is and poor should be assisted until they stand on their own legs. Period.

Rest all is politics !

[Elson K @Elsonk94K]

@sumanthraman In the shorter term US rate cut will begin the normal expansion process of the tech companies. Yeah in the longer run due to the COVID induced WFH or hybrid culture, there may not be a big expansion in terms of work space.

[Uday Kotak @udaykotak]

My year end musings. A Financial Sector Model for India’s dream: 9% annual growth, $30 trillion GDP by 2047.

India is transforming from a nation of savers to investors. The tussle between the saver/ borrower and issuer/ investor model is underway.

In the early 80s, the Indian saver had low confidence in financial assets versus gold and land. Slowly the saver moved some part to bank deposits, UTI and LIC.

Even in the 90s, investing in equities was considered “speculative”. Hence companies looking for capital went to the foreign institutional investor (FII). FIIs saw potential and bought into companies while the Indian saver stayed away. Companies raised capital through the less known Luxembourg stock exchange. India’s capital market was being exported.

Some of us highlighted this phenomenon to SEBI. That began the private placement market (QIP) in early 2000s. Hence FIIs could also buy on Indian markets. The Indian saver’s interest in markets improved after the global financial crisis.
That saver is now savouring the joys of investing. Mutual fund platforms, cash equities and derivatives markets, insurance funds, global private equity in India, other platforms like AIFs, lower tax regime for equity, have all converted a saver to an investor.

How do we create a sustained growth story hereon?

1.Many investors have joined post Covid. They have mainly seen upside. While the situation is not comparable at present, we need to keep Japan of the 80s at the back of our mind. Its Nikkei Index peak was 1989. 34 years later with near zero interest rates, the Nikkei is still below its 1989 peak. We must avoid bubbles through policy, regulation, education, and supply of quality paper. Companies should raise equity at lower cost of capital for productive use.
2.While we must avoid tax arbitrage in debt, unless debt markets grow it will be a one legged race. The current gap on highest marginal tax rate between debt and equity of 39% and 10% is perhaps too wide.
3.Double taxation on dividends needs relook. A shareholder is like a partner. There is no additional tax when money is moved from the partnership to the partners capital account. Same principle applies to shareholders.
4. Low cost leverage through derivatives can distort financial markets. This needs attention.
https://t.co/M1heYN2OvA savers become investors the banking sector faces challenges on its deposits and cost of funds. The large corporate sector has to meaningfully move to capital markets (debt and equity) and away from banks. Banks will become distributors of corporate debt rather than storage houses. They will need to penetrate mid sized corporates, MSMEs and consumers.
6. We should avoid a retrospective tax and regulatory regime. We will need to balance developmental and regulatory role.
7. Two areas which need urgent focus for India’s aspiration are acquisition financing and streamlining of the IBC/ NCLT process.

As India aspires, the financial sector will be the key engine for delivery. Impact of technology is a separate subject of discussion for a future date. The saver/ borrower and the issuer/ investor models will coexist. It is time for a wholistic financial sector view.

[Shyam Sekhar @shyamsek]

The ability to introspect, course correct, reinvent and revive are critical to developmental politics. If you do the same things for decades for ideological reasons without inducing fresh thinking, you are probably going to see your more dynamic peers do better. The lack of change can hurt economic progress far more than we imagine.

The people who follow you blindly will be the ones who suffer for your lack of vision, pro-action and purpose. This will apply to every level of governance, be it in a cooperative, corporate or community.

100 years ago, Bengal was an industrialised state. See where it is now. The fate of every stale, static social structure will be no different. Ideology will not grow societies. It cannot even save static societies from slow decay. You need to break free and find better ways to faster economic progress.

[Sun News @sunnewstamil]

#Photos | வரலாறு காணாத கனமழையால் தூத்துக்குடியை சூழ்ந்த வெள்ளம்!

#SunNews | #TuticorinRains | #HeavyRains

[Nimal Raghavan @being_nimal]

#ChennaiFloods #ChennaiRain #CycloneMichuang

[Wildlife Institute of India @wii_india]

Tadoba tiger traverses 2,000km, crosses four states, reaches Odisha @vrtiwari1 @bhlab @wildwithwolves https://t.co/Cd6EdmSEsb

[Vishal Khandelwal @safalniveshak]

Mr. Narayana Murthy: "My request is that our youngsters must say, 'This is my country. I want to work 70 hours a week.'"

Media: "Narayana Murthy says youngsters SHOULD work 70 hours a week."

[Elson K @Elsonk94K]

@BaluGorade Thanks for sharing.. Enlightening!!!