Debt
June 26, 2013
Real Estate crash in India Estate prices have kept moving upwards relentlessly even as other asset classes have languished. Corporate mis-governance and corruption has driven investors […]
April 28, 2013
The Finance Minister’s take on NPAs It seems the year 2013 will be marked as the golden year in the era for the non performing assets. […]
April 17, 2013
Relevance of Capital Markets In today’s global dynamic market, the economic relevance of a Capital Market lies in its effectiveness. It is dependent on how effective […]
April 10, 2013
Warren to buy Suntech? Suntech stock surged almost 28%, after a rumor that the world’s smartest investor Warren Buffet would buy the company. I don’t know […]
April 8, 2013
Mike Parker rightly said, “When you don’t invest in infrastructure, you are going to pay sooner or later.” Indian government after realizing the need of development […]
March 21, 2013
Suntech Debt Default Suntech (STP) which is one of the worst managed solar companies in the industry has been going through tumultuous times after it got […]
March 14, 2013
Leverage Buyout Leverage Buyout is the process of acquiring a firm in which the investment for acquiring is made partially by equity and partially by other […]
March 12, 2013
Foreign Currency Convertible Bonds (FCCB) FCCB or the Foreign Currency Convertible Bonds is a type of convertible bond issued in a currency different than the issuer’s domestic currency. It […]
March 12, 2013
Suntech, China The world’s largest solar panel company in 2011 now faces possible closure as it does not have money to pay the convertible bond due […]
March 8, 2013
Indian Financial System The basic structure of Indian Financial System is divided into four components which are: Financial Services Financial Markets Financial Instruments Financial Institutions Financial […]
March 7, 2013
Capital Market A capital market is a market for securities which can be either debt or equity, where business enterprises which includes companies and governments can raise long-term funds. In other words it is defined as […]
February 20, 2013
About Goldman Sachs The Goldman Sachs Group, Inc. is a leading global financial services firm providing investment banking, securities and investment management services to a diversified […]
February 18, 2013
Nomura Group Nomura Group is one of the leading Financial Services organizations operating across the world. Nomura was founded in 1925 in Japan and is a […]
January 3, 2013
“If you suffer from small loans, you have a problem; but when you borrow alarmingly large sums, then it is the lender who will suffer a […]
December 31, 2012
HSBC HSBC Holdings plc also known as HSBC commonly is a British multinational banking and financial services company. The company is headquartered in London, United Kingdom […]
October 14, 2012
The travails of China’s top solar panel manufacturer do not seem to stop with its credibility being hit by a new problem each day. Suntech has […]
September 18, 2012
Deccan Group Falls Down The collapse of the Deccan Group which is the owner of one of the largest media groups in the country and the […]
September 10, 2012
Stock Market One of the most fascinating things about the stock markets is that there are as many views and opinions about the markets as the […]
August 22, 2012
Suzlon, The Wind Turbine Manufacturer Suzlon which is India’s largest pure play green company and one of the largest wind turbine manufactures globally has been stuck […]
July 6, 2012
Any BRICs investor can tell you intuitivity without performing extensive spreadsheet analysis that putting money into debt has proven to be more profitable than equity over […]
July 2, 2012
The news report on Department of Energy informing of Abound Solar demise surprised many people and led to the usual media excitement of Obama’s faulty loans […]
June 28, 2012
Indian Solar Energy has received wide acclaim in national and international media for being a great success. However compared to other countries, the claims seem quite […]
June 27, 2012
Chinese Scenario Big Chinese state owned companies are gobbling up financially strained Western solar firms as a massive overcapacity in global solar panel supply (caused by […]
June 25, 2012
I have always said that investing in Indian mutual funds is a dumb idea given the lack of regulation , under performance, high fees and front […]
June 25, 2012
The Polysilicon Companies have seen an amazing amount of profits in the period between 2008-2011 end as prices of polysilicon shot up to $400/kg which resulted […]
June 22, 2012
However India's biggest capital good equipment company BHEL owned by the government is plannning a $500 million investment to build a solar cell factory in at Sakoli which is part Union heavy industries minister Praful Patel's constituency Bhandara.Talk about how dumb you can get. BHEL hardly has too much expertise in the solar panel industry and with solar cells in massive oversupply,it is almost sure to lose money. However that is how things work with Indian government companies where investment is made at the whims of ministers rather than rationality and business sense.BHEL is currently trading at one of the lowest valuations in its 10 year history and its not a big wonder why. The company has benefited in the past as did other machinery and engineering companies from an infrastructure invesment boom. However those glory days are over for the company as it faces competition from the Chinese companies and decreasing orders flow. Praful Patel the minister has already spent a few years in the airline ministry presiding over the conversion of the state owned carrier Air India ino a basket case. Now its the turn of BHEL to be turned into a basket case as well.
March 29, 2012
This may be a dramatic statement to make about the world's most valued solar company but there are several reasons which I will explain below to illustrate this point. Note the solar industry is in a league of its own in the astonishing drop it solar panel prices (80% price drop over the last 3-4 years) and the rapid increase in demand (60% CAGR over the last 10 years).So the comparison and analysis by your usual stock hacks on financial portals like Motley and Seeking Alpha is way off the mark. First Solar had the worst 2 quarters in its history in 2011 as it went from a record breaking profit company into the red. Many issues which were hidden by its past success came out in the open and some of them are life threatening. Here are these problems
February 29, 2012
China's solar panel companies can used their government banks backing as a major competitive advantage. Just like their telecom equipment companies ZTE and Huawei they can use the debt to win contracts over suppliers from India and elsewhere. Note there is a already a major controversy in the USA over the subsidies and support given to Chinese solar companies and has led to a so called solar trade war between the two . Even USA has used its EXIM Bank to provides millions of dollars in financing of solar farms which are supplied by US Solar Panel producers First Solar. Chinese companies Goldpoly are using the strong billion dollar lines to build solar projects in the Europe as well
February 27, 2012
The falling prices of solar panels has made almost impossible thought of solar electricity prices possible today. In a state auction of solar projects ,a small company Alex Green Energy bid only 14c/ KwH to win the auction. The price is lower than that seen in the Indian federal subsidy auction JNNSM. Note Rs 7/ Kwh that was bid is close to the Rs 6-7/ Kwh retail electricity prices in most cities in India.Note in the first phase of auction the lowest price was more than 50% higher at Rs 10/ kwh
February 25, 2012
India's Solar PowerIndustry is starting to see some M&A with both domestic and foreign companies buying smaller firms. While the biggest M&A story is that of Tata Power acquiring the stake in Tata BP Solar, other firms without any grounding in the energy industry are too getting in. Now a Coal Equipment and EPC company Tecpro is getting into the solar energy business by acquiring a small solar lighting and heating company Eversun.Tecpro Systemsis primarily focused on the Power Sector Space.It is a leader in the ash handling and material handling systems and is currently diversifying into becoming a turnkey provider in this segment.Like other infrastructure players it has seen amazing growth in the last 3 years at around 70%+.The growth has been fantastic both on the topline and the bottomline.The 2300 crore Order book provides some comfort over the next year’s revenues or so.The Power Sector in India particularly the Thermal Power Plants are expected to see an explosive growth period.Steel and Cement sectors are also growing strongly.With Tecpro Systems focusing on these 3 segments,it should be able to maintain a good growth trajectory in the future years as well