Snapshots That Wow!

‘ROE’ rows the valuation boat

There is only one reason why US and India have almost always traded at a premium to global markets- our businesses respect capital, i.e. we have a large proportion of companies earning ROEs north of 20% 28% of companies in India delivered a 10Y average ROE north of 20%, second only to USA.

Even then given the exceptional tech cycle US is in, current average ROE is 500bps over their 10Y average of 16%. This will no doubt correct in the medium term.

Source: DSP Netra

When the (animal) spirits are high!

"The August Philly Fed reading for business conditions six months from now saw its biggest monthly jump ever to hit its highest level since August 1983. This survey has been running monthly since 1968, the longest-running regional Fed survey."

Source: Chartbook, Philly FED

The sun shines brightly upon us!

“For the first time ever, clean energy capacity in India has taken the top spot. That’s a 12x expansion over 25 years.

Everyone’s talking about the environmental side ofthis shift, & that is big, of course, but I think the real story here is grid sovereignty.

Scaling renewables at this pace moves energy away from being a volatile, imported commodity & turns it into a domestic advantage.”

Source: Anand mahindra, Indian Matrix

Time to earn in INR and spend in USD?

“The long term average is now the max India US inflation differential”.

Logically, the with the inflation differential collapsing to just 0.5%, the chances of rupee depreciation trend pausing if not reversing are very high.

Source: Sahil Kapoor

Kaale megha kaale megha, paani toh barsao

“The Danube and other rivers in Europe are experiencing historic drought conditions which have thrown shipping, tourism and energy supply into disarray. Additionally, the sinking water levels that have set new all-time records in some locations have revealed historic finds from World War II to Roman times and even the Ice Age.”

Source: Statista

Less talk, more strudel!

“The international perception is often that Europe, and Germany in particular, resembles a museum: impressive in terms of past achievements, but not especially exciting from a future growth perspective. While there is some truth to that criticism, the reality is more nuanced. After years of economic stagnation, entrepreneurship in Germany is showing remarkable strength.The start-up boom is being driven in large part by AI, with around one-third of new ventures focused on the sector.”

Source: Deutsche Bank