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master
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   Posted: 23/Jan/2009 at 10:04pm |
Specific to kotak, there is an important shift in mix of "other income" as compared to Dec07 period.
Premium on insurance business constitutes as high as 63% of other income (as against 33% for Dec07 period) whereas commission & brokerage income is down to 36% (as against 50% for Dec07 period). Insurance premium may be more sustainable probably.
Edited by master - 23/Jan/2009 at 10:06pm
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kulman
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Posted: 23/Jan/2009 at 10:13pm |
Originally posted by master
Insurance premium may be more sustainable probably.
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How much was contributed by (t)Ulip?
(t)Ulips were marketed aggressively by misleading investors. I guess that not many people might renew.
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kumardiwesh
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Posted: 23/Jan/2009 at 11:31pm |
Originally posted by basant
Companies like Kotak Bank, R Cap, Indiainfoline, Geojit, Edelweiss are bull market stocks in bearish conditions they get a double whammy not only does the PE decline the EPS also moves down hence lending a double blow. |
You mean to say the element of cyclicality in these businesses is quite high.
Which of these businesses would be the best buy at present?
R Cap?
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"History does not tell you the probability of future financial things happening" - Warren Buffett
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basant
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Posted: 23/Jan/2009 at 6:35am |
I would not buy any of these at any price. Reason being I cannot know whether the stock would become cheap (EPS would growth is unpredictable).
Even when these companies were very hot about ayear and ahalf back I was not attracted to them for this very reason. I like buying companies who would get cheaper every year (the degree of growth could differ though).
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kvinodhan
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Posted: 23/Jan/2009 at 6:43am |
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Just to get my understanding right....you wouldn't might looking into companies even though is PE is getting low if EPS remains intact.....
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basant
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Posted: 23/Jan/2009 at 6:58am |
See most of these companies are leveraged to a bull market and unless we get aroaring bull in place how can companies with brokerages, Asset management busineses etc do well and even if they do markets wil never rate them with a higher PE>
Hence I would not buy them but if you are holding 20 stocks you can add a couple of these and that too when the stock price just stays flat for a few months and goes nowhere.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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kanagala
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Joined: 31/Mar/2007
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Posted: 23/Jan/2009 at 8:57am |
Originally posted by kumardiwesh
Originally posted by basant
Companies like Kotak Bank, R Cap, Indiainfoline, Geojit, Edelweiss are bull market stocks in bearish conditions they get a double whammy not only does the PE decline the EPS also moves down hence lending a double blow. |
You mean to say the element of cyclicality in these businesses is quite high.
Which of these businesses would be the best buy at present?
R Cap?
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How many of you believe in Rcap numbers? KMB looks like a good bet among them.
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While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior.
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Circuit
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Joined: 14/Jun/2008
Location: India
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Posts: 930
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Posted: 23/Jan/2009 at 9:32am |
I agree with Basant that the stocks like - JP Associates, RCap, Kotak are Bull mkt favorite stocks (Rockets) and not to be even looked at during prolonged bear phase like the one we are sailing in.....
Originally posted by kanagala
Originally posted by kumardiwesh
Originally posted by basant
Companies like Kotak Bank, R Cap, Indiainfoline, Geojit, Edelweiss are bull market stocks in bearish conditions they get a double whammy not only does the PE decline the EPS also moves down hence lending a double blow. |
You mean to say the element of cyclicality in these businesses is quite high.
Which of these businesses would be the best buy at present?
R Cap?
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How many of you believe in Rcap numbers? KMB looks like a good bet among them.
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