Nice Macro Monthly

NETRA monthly publication from DSP Mutual fund is a very nice Macro Monthly newsletter, I read it every month. From the Oct edition this is what caught my eye

#1 Chinese tech companies are sitting on massive cash

DSP slide comparing Chinese tech, NYSE FANG+ and Nifty IT stocks, Sep 2024: Chinese tech holds 23.7% of market cap in cash at much lower P/E

Some of them holding ~50% of their M-cap as cash like JD.com. I have written extensively on using Debt Capacity bargain as a model to value stocks, read this example on NBCC

Some from above list once you done business analysis are worth a swing. If you like me to do a similar analysis on anyone of above leave the name in comments

#2 Well run private sector banks may be a safe house in case of market meltdown

DSP chart, Dec 2002 to Sep 2024: banks earn 25% of NSE 500 profits but are only 12% of its market cap, below the 14.1% trend

While writing on YESBANK, I pointed out that many large well run banks are trading below 2 times book which is below their long term averages, reproducing chart below from that write up

Bar chart of 12-month ROA for key Indian private banks: Kotak highest at 2.62%, ICICI 2.13%, HDFC 1.99%, Yes Bank lowest at 0.34%

In NBFC space, we covered JM Financial last week

Happy Investing!

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