While i don’t subscribe to any brokerage call and we should do our own research before any buy sell decision, though the market reacts at times to foreign brokerage call.

But I think SEBI should explore to restrict these brokerage calls which appear in digital media that give a sell call with target variation of astronomical 40% -50% which in my view may not happen at all.

However, we must read /understand the facts & figures if that call is based upon some logic.

What UBS says ?.

“The foreign brokerage said Hero MotoCorp’s wholesale volumes and festive optimism are clouding the two-wheeler maker’s retail underperformance.”

(Whole sale volume is B2B – company to dealer where as retail sales is B2C – Dealer to Consumer – which means company is pushing it’s products to dealers and dealers are not able to sell/ retail to end customers -result id huge inventory build up at dealers end.

Further it said ” In April-August 2024, Hero MotoCorp’s retail market share contracted 310 basis points to 28.8 per cent, with the September market share falling further below 24 per cent and 400 basis points behind Honda”

“Competition from Honda Shine, Bajaj Freedom and an increased shift to scooters and EVs in smaller towns are further eroding Hero’s core customer base”
( Here UBS says there is a clear shift from motorcycle to scooter and EV, currently almost all 2 wheelers EV are meant for entry level)

You may please refer to the full article.

Discl : Invested in Bajaj Auto and I have a small position Hero motocorp and under.my watch list. I may be biased. This is not a buy sell recommendation. Please do your own assessment before investing.

One problem with karnataka govt is divergence of budget towards guarantee scheme and pending payments for many

Though looks reasonable in valuation, fundamentals are good too, OPM is alright too, they are into expansion mode.

But stock price is falling heavily, promoter diluting too much stake at the sametime buying from lower levels too.

Confused about it.

Disc- Invested and confused

Reason – Investor sentiment has soured on Microfinance as a sector. Promoters see stark contrast between their expected valuations vs what the current market is offering.

Interesting developments, Aashirvad IPO getting delayed, Fusion Micro finance going through stress, ban on IIFL getting lifted, its really a mixed bag here ! But it does seem like the micro finance industry as a whole is still battling headwinds i.e. moderating AUM growth, higher delinquencies, tough start to the year because of elections and heat wave impact. Hopefully, H2 (Oct-March) numbers will be better as they historically have been.