Evaluation Gap News Today

Kunj Bansal discusses the re-rating of public sector banks catching up with private banks, mixed retail sector performance, RBI directive benefiting banks, and the importance of fundamentals and valuation for higher returns in the investment.

This week’s Chart of the Week explores the relationship between market cap., liquidity, and valuation. In the current capital-constrained environment, a…

This week’s Chart of the Week explores the relationship between market cap., liquidity, and valuation. 

With outperformance by other private and mid-tier PSU banks, the valuation gap between mid-tier and frontline banks has narrowed, Elara Securities said.

Sohini Adnani says: "I​n an improving economic scenario, the earnings upgrade cycle for midcap stocks is far more robust as their size allows higher percentage growth in revenues and improvement in margins, which leads to superior earnings growth versus largecap companies. This leads to better valuation rerating for midcaps versus largecaps. If you look in absolute terms, even returns in large cap funds are above average during the last year but obviously not as robust as midcaps."

“The capex that will be needed for tomorrows world will be very different. India is taking the lead in some of those sectors and maybe in the next few years, once people have a little more clarity in terms of the technological changes and what is happening in the world, and then put up large money on the table and commit large sums.”

“The next one year may not be very exciting for value investors because all of us know it is very rich valuations in general, so we have to go bottom-up stock pickers or business pickers, very selective, looking at the future of these companies and the verticals they are operating in and that way it is exciting. But in general, hurrying to pick stocks at these valuations, is not going to work.”

Bob Iger says recent Disney's negotiations with Comcast for Hulu have been amicable, but these 7 details show that hasn't always been the case.

European oil majors’ growing discounts to the US companies should spur cross-border M&A talks

Market Uptrends Persist as the Dow Violates Resistance