Shuchi Nahar's Weekend Blog!

New realities of Banking industry  in India Shuchi.P.Nahar India’s  banking  sector  is a study in contrasts: it supports the world’s fastest-growing large economy but is grappling with challenges that test its strength and resilience. Primary among them is the burden of distressed loans. According to Reserve Bank of India (RBI) data, the value of banks’ gross nonperforming assets (GNPA) and restructured assets reached $250 billion in April 2019 and has been growing by almost 25 percent year on year since 2013. State-owned banks account for more than three-fourths of the stressed-asset load, which is now far higher than their net worth. Provision levels are inadequate because these banks hold only 28 percent of GNPAs and restructured assets as provisions. There is a gap of close to $110 billion between the system’s stressed assets and the provisions made. These problems  are  considerably  less  severe  for  private  banks. Banking industry are very crucial to the eco

Book: Shoe Dog - by Phil Knight(co-founder NIKE )  Summary :Shuchi.P.Nahar I ncredible book about Phil Knight  the Co-founder of Nike.  He clearly explains the struggle to build a brand,a business and to execute the idea into implementation. This book is a master piece for one to understand how management of business takes place, how a business is build from scratch to an empire.  Stanford graduate, after a year in the army, he was looking for meaning and had what he called “a crazy idea” Blue Ribbon — Early Beginnings Blue Ribbon (and later Nike) was always cash strapped, until it finally went public (decades later), because every cent was reinvested in ordering/producing more shoes and the company was doubling in size every year. Back then Venture Capital was non-existent and banks would reject Blue Ribbon, as they “didn’t have enough assets”, despite their insane growth. Strapped on money the company always kept super lean, working from storage rooms, surrounded b

How to stay calm ,when markets are not?        Shuchi.P.Nahar Introduction: The stock market volatility has radically increased in recent days and economies are currently passing through a tumultuous period has reflected in all  financial markets and asset classes. The global economic slowdown created a lot of worries in the capital or equity and property market. Business organizations around the world have been affected by volatility in the stock and property markets. In India, fluctuations in the currency market can obstruct the stability in the equity market and hence stock market volatility shoots up. The study of volatility is therefore very important in an emerging market nation like India. Nifty volatility index is also called as India VIX which is treated as India’s volatility Index and is taken as an important indicator of market expectations of near-term volatility. Sometimes investing can feel like flying through a thunderstorm. Lots of bumps and noise. Hard

Summary: The Little Book That Builds Wealth Shuchi.P.Nahar Warren Buffett mentions moats all the time in his talks and writings and emphasizes the importance of finding a company with moats.   It remains one of the more concise and enlightening books for investors looking for great businesses that stand the test of time - historically, the kind of investments that return their worth many times over. The Little Book That Builds Wealth is the fifth book in the Little Books series from Wiley Publishing, each of which focuses in on describing a particular investing strategy in layman’s terms. This time around, the focus is on competitive advantage, or “moats” – the basic idea that Warren Buffett uses when investing.  Chapter One – Economic Moats The book opens by defining the concept of a moat. In a nutshell, a moat is a significant competitive advantage that one company has over another. The great example used in this chapter is McDonalds – in 2002 and 2003, M

Weekend BLOG 4                                                                                                      Shuchi.P.Nahar Disclaimer: So in this blog I have tried to summarize my learning from various research reports justifying the road map for pharma companies in India. All credits to content writers and various reports that are worth reading to have an extra-ordinary idea about pharma sector growth and expansion ahead. Pharma Sector Growth Ahead-2020 The Indian pharmaceuticals market has characteristics that make it unique.  First, branded generics dominate, making up for 70 to 80 per cent of the retail market.  Second, local players have enjoyed a dominant position driven by formulation development capabilities and early investments.  Third, price levels are low, driven by intense competition.  While India ranks 10th globally in terms of value, it is ranked 3rd in volumes. These characteristics present their own opportunities and challenges. An expanding