Source: Distressed Value
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Linkfest:July 20,2015
Some stuff I am reading today morning:
Global funds make a beeline for Indian Banks (ET)
How fair are equity analysts? (Mint)
Modi faces dissent over Indian labour laws (Bloomberg)
IPO Review: Syngene International (MyInvestmentIdeas)
Emkay Research Report:Bajaj Auto (MyIris)
Tax Free Bonds Notification FY2015-16 (OneMint)
How goodwill builds up (Jana)
Luck Vs Skill in active management (CommonSense)
3 Years down in a row.Buy. (Meb Faber)
The travels and travails of the Macro tourist (Barry)
Categories
Weekend Mega Linkfest: July 17,2015
Some off beat reads for the weekend:
Athens 1944: Britain’s dirty secret (Guardian)
Kota System: 600 Crore Coaching Industry (Open)
The incredible journey of Sania Mirza (Newslaundry)
60 quotes by Rakesh Jhunjhunwala (Money Excel)
India’s super 50 companies (Forbes India)
The battle for the BBC (Guardian)
Travelogue:Himachal in a Renault Duster (TeamBHP)
How I exited Mobile2Win India (Alok Kejriwal)
On Bobby “I am not Indian” Jindal (Great Bong)
Beyond Pluto (Scroll)
A startup called Gymer (Your Story)
What’s so special about ‘Baahubali’ (Forbes)
India’s newest superstar is a film director (Wire)
How to get rich in the new Cuba (New Yorker)
What open marriage taught one man about feminism (NYMag)
Saurabh Mukerjea of Ambit Capital sure thinks so.
In an interesting report, Ambit Capital lays out the bear case for real estate prices and makes this startling remark:
In a fairly-priced real estate market, the rental yield tends to be somewhere close to the cost of borrowing. Instead, Mumbai has a rental yield of close to 2% (this is gross of tax and maintenance charges) whilst the lending rate hovers around 10%.
The difference between lending rates and rental yields is one of the highest in India (see the exhibit on the next page). Even if one assumes that buyers are willing to live with only 5% rental yields (as they might have an extremely bullish view of capital gains arising from real estate in India), this would imply halving of real estate prices in Mumbai.
Source:UBS Research Report