WhatsApp Snippets on 20.07.26

1. During the correction in interest rates, the Net interest margin of Banks generally fall as the lending rates fall immediately but deposits contracted before the interest rate correction continue at higher rate till their maturity.

2. Shyam Metallics and Energy Limited

Key Highlights-

It has been profit making for last 2 decades despite it being in cyclical industry.

Revenue, EBITDA and PAT is growing around 20% CAGR over past 2 decades.

Continuous Capex in value added products by utilizing internal Cash Flow.

 Snippets on 11.07.2026

Pace Digitek is an early mover in BESS segment and scaling fast alongwith manufacturing of containers for BESS as captive consumption.

SME IPO improves your presence at higher audience of investors to know more about your company and attract prospective customers too.

Panchamrit Approach: Growth, Profitability, Quality, Quantitative Strength and Value.

 

Himadri Specialty Chemicals is a Carbon Black and Coal tar pitch manufacturer. 

Its PAT has grown from 47 crores in FY20-21 to 755 crores in FY25-26. 

As an upstream development, the company has developed anode active materials with the operation of pilot plant to commence shortly. 

The company is also in the process of manufacturing LFP cathode active materials with initial production to start in Q3 this year. 

For completing the battery chain, it has invested in IBC recently. 

The company has also turned around Birla Tyres recently as an upstream of Carbon Black.

 

Microfinance in India-Need for structural change

A Large portion of India is under-served for Banking Services. This vast under-served population depend on NBFCs, most of which are not authorized by RBI to accept deposits. In spite of several scams and loss of savings with these NBFCs, people in remote living in remote villages still deposit money with these scrupulous organizations mainly because of no other option.

Inaccessibility of these inhabitants coupled with tiny size of volume, formal banking as well as financial channels do not reach them. The cost of accepting deposits as well as lending along with collections is huge due to accessibility and tiny size of deposits as well as loans.

Banking Correspondent model and UPI can mitigate this to a large extent. Due to direct benefit transfer, almost everybody has a bank account. However, the access problem continues as Bank timings not matching the available time of the account holders. They move out before the bank branch opens and return after the bank branch closes. ATM counters in or adjacent to railway station, bus stands and market can mitigate this issue.

Another major hurdle is reluctance of shopkeepers to accept UPI payments. Steps should be taken for universal acceptance of UPI payments by all shopkeepers. Banks should also consider the cash flow in any account for sanctioning loans and advances to their customers. If both the payment and receipt is done online, the need to visit the Bank branch is reduced considerably.

This will also help the credit history of under-served population. 

There is skepticism about the public sector investment for growth in GDP. The Debt to GDP ratio has gone up to 81% with GDP Growth at around 7.4%. Higher Debt has kept the effective interest high inspite of RBI lowering benchmark rates. The borrowings by both Central and State Governments has crowded out the credit available in the market. Some analysts are worried about the limitations of growth in borrowings. This calls for greater analysis.

The Government Accounts are prepared on Cash Basis. This means that there is no differentiator between Capital and Revenue Expenditure. The expenditure in infrastructure is a capital expenditure and results from it take a longer period to fructify. Improved consumer behavior and even education standards in smaller towns  is the result of better connectivity. This also improves GST as well as direct tax collection. But there is always a time lag. 1st it takes time to complete an infrastructure project, Next it takes time for the infrastructure to really noticed and consumed by the public. Our Country has still lot of areas with poor connectivity and travel time between any two important destinations are still high. There is no option of slowing down the spending on infrastructure.

The other part of the problem is high borrowings. The Government need funds for spending. A large part of Government assets are locked up in PSUs. If Capital Expenditure of the Government is routed through PSUs, which again can be funded by selling the equity of these PSUs to public. This will reduce the overall borrowings of the Government. Listing of these entities will make them more accountable to public too. The Large PSUs like Coal India, NTPC have large number of subsidiaries. If they offer the shares of these subsidiaries to Public, they can raise resources for expansion or pay higher dividend to Government. This will reduce the need for higher borrowings.

Recently, Coal India has made a public issue for one of its subsidiary, Bharat Coking Coal Limited with listing of CMPDI in pipeline during the current year. It has also decided to list two more subsidiaries, Mahanadi Coalfields Limited and South-Eastern Coalfields Limited in coming year. Similar steps an be taken up by NTPC. HAL which requires huge capital for ramping up its production capacity can also raise equity from the markets and even form joint ventures with Private entities for carrying out specific projects.

This will reduce the pressure on debt market and reduce the interest rates in real market. Only issue is, whether the markets absorb large number of equity issuances or it may crowd out the private sector. With less debt issuance, there will be improved liquidity in the market and the ratio of equity investments by institutions like insurance and pension funds with long-term maturity liability. Things will stabilize in long-term. Even now, there is enough liquidity to absorb IPOs as can be seen from large oversubscriptions.

With better Debt-GDP ratio, even the foreign capital will start flowing. We may still see GDP growth on the basis of infrastructure expenditure already made.

 

 

 

Lachhuka Insights

Dated 01.01.2026

 

General

It has been observed that Equity has given better return over a longer period of time. BSE Sensex has moved from 100 in 1980 (base year) to around 85000 now. NIFTY 50 has moved from 1000 in 1995 (base year) to around 26000 today. If we see Mutual Funds, HDFC Flex cap launched in 1995 at Rs. 10 is more than Rs. 2000 today.

But the Equity Market is volatile and there are periods of negative returns too.

As our goal is to accumulate funds to meet certain objectives, we will discuss only SIPs (Systematic Investment Plans) similar to Bank Recurring Deposits.

It is therefore important to identify the timespan required to meet the goal. Care must be taken to keep emergency funds in debt or liquid funds, especially the ones having no exit load.

If the investor has no enough corpus in hand for emergency funds, it is advisable to park a part of monthly savings in bank recurring deposit or SIP in liquid fund to create the corpus.

After meeting all these emergency needs, everyone has to save something for the retirement or even the goals like higher education.

There is no same set one rule for all. Different people have different needs.

Some people have ancestral house and there is no need to buy one.

Some people have pension income with some having it inflation adjusted one.

There are some, whose medical expenses are covered lifelong by the employer.

Some pensioners have to support their children after retirement, while some people can depend on their children.

Some may have forced retirement savings by way of PF and Gratuity entitlement, while some may not have the same luxury like Gig workers, Self-Employed Businessmen and Professionals.

Different situations demand different style of investment.

Whatever be the situation, a portion of savings must go to equity with enough patience to hold.

Returns comparison:

	03.11.1995	31.12.25 (Near figures)	Times (Approx)
HDFC Flexicap	7.88	2050	260
NIFTY 50	1000	26000	26
GOLD	4680	136000	29

 

The above table demonstrate that even the passive fund like NIFTY 50 (which is almost static for a year) almost matches with returns in Gold (which is more than 50% up in a year), while actively managed mutual fund outsmarts substantially.

There is no other way to accumulate a self-dependent fund.

We should not be shy of taking the help of an expert, if DIY (Do it yourself) is difficult.

Lachhuka Insights

Investment of Savings or funds set apart for future expenses, emergencies, business expansion or to meet uncertainties is important for every entity whether for personal needs or businesses.

As an individual, we need funds for various life-time events like:

1. Admission of Children to School, Admission Fee and Caution Money make it a good sum, specially in early part of your career.

2. Higher education expenses of Children.

3. Buying a House.

4. Buying a Car.

5. Marriage of your children.

6. Completion of important milestones like 25th Anniversary.

7. Retirement Corpus.

Apart from these, we need funds for medical emergencies, drop in income due to service-break, annual vacation, occasional Gifts to spouse and children.

There may be varied and diversified instruments to meet each of your goals. You should not shy of taking the help of an expert, if you find DIY(Do it yourself) difficult.

As a Business, we need funds for:

1. Expansion.

2. Temporary drop in business.

3. Temporary impact in flow of funds due to slower collection or movement of inventory.

4. Need to ensure the uninterrupted supply chain, specially the critical ones.

5. Payment of one-time settlement for employees like Gratuity.

Creating a separate fund from non-cash expenses like Depreciation, Provisions for Gratuity or other expenses is very much important for smooth functioning by timely replacement of fixed assets. Apart from these, some funds should be separated to meet expansion and diversification requirements.

There may be varied and diversified instruments to meet each of your needs. You should not shy of taking the help of an expert, if you find DIY(Do it yourself) difficult.

P.S. Returns, Volatility, Liquidity and Risk is important in deciding the investment instruments.  

For Example, Rs. 10000 on 01.01.2005 invested in SBI Contra Fund is Rs. 3,26,903.35 on 10.10.25, while it would be around Rs. 80,000, if invested in Bank Fixed Deposits during the same period.

But, the risk and volatility is higher in equity specially in shorter period.