Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily27032012.pdf
Strategy: Positive changes in rural India
` Pulse check: rains, government and land - all lend a helping hand
` StarAgri: bridging the supply-chain deficit in Indian agriculture
` Meetings with Mahindra Finance, TAFE and Dainik Bhaskar affirm strong
demand outlook
` Good monsoons and pick-up in construction/housing activity driving tractor
growth
Pulse check: rains, government and land – all lend a helping hand
Endogenous and exogenous factors have contributed to a fast-growing economy in Rajasthan:
(1) rains have been significantly better over the past few years and agricultural yields have
improved, (2) government’s increased payouts to farmers as well as government employees and (3)
increased wealth effect due to rising prices of land have contributed to a sharp jump in
consumption across agricultural equipment, media and even in financing.
StarAgri: bridging the supply-chain deficit in Indian agriculture
With Rs1.5 bn invested recently by IDFC Private Equity, StarAgri proposes to increase its
warehousing capacity from 0.6 mn tons to 5.0 mn tons by FY2017E. The company holds
commodities worth Rs15 bn in its warehouses and has procured commodities worth Rs5 bn in
FY2011. There is a significant demand for financing of warehouse commodities: (1) it helps in
financial inclusion as it reaches the small and marginal farmer, (2) helping him avoiding distress
sales. As banks get more comfortable with the processes of collateral management, this can be a
good way for the banks to reach out to the priority sector.
Meetings with Mahindra Finance, TAFE and Dainik Bhaskar affirm strong demand outlook
We met regional head of Mahindra Finance, TAFE and Dainik Bhaskar. All of them indicated that
they are growing at a strong pace in Rajasthan driven by rise in urbanization, good monsoons,
pick-up in construction/housing projects and pick-up in literacy levels. Mahindra Finance and TAFE
indicated that they are likely to grow their businesses by 50% yoy in FY2012 due to diversification
of portfolio/strong tractor growth.
Dainik Bhaskar indicated that Rajasthan market is growing at a reasonable pace driven by
improvement in literacy levels, favorable demographics and increase in urbanization. In Rajasthan,
the number of editions has increased to 33 from 16 over the past 6-7 years due to migration of
people from rural to urban Rajasthan. Hindi continues to be the most widely read language.
English papers are not growing at a very significant rate than Hindi papers despite lower
circulation.
Good monsoons and pick-up in construction/housing activity driving tractor growth
Rajasthan has seen the best rainfall in the past decade which has led to record production of
mustard and groundnut crop. Construction/housing projects are also being executed at a rapid
pace and we could see rapid rise in residential/commercial building work across the city.
Replacement cycle of tractors is also shorter in Rajasthan (around 3 years versus 5-6 years of allIndia average) which is also supporting demand
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily27032012.pdf
Strategy: Positive changes in rural India
` Pulse check: rains, government and land - all lend a helping hand
` StarAgri: bridging the supply-chain deficit in Indian agriculture
` Meetings with Mahindra Finance, TAFE and Dainik Bhaskar affirm strong
demand outlook
` Good monsoons and pick-up in construction/housing activity driving tractor
growth
Pulse check: rains, government and land – all lend a helping hand
Endogenous and exogenous factors have contributed to a fast-growing economy in Rajasthan:
(1) rains have been significantly better over the past few years and agricultural yields have
improved, (2) government’s increased payouts to farmers as well as government employees and (3)
increased wealth effect due to rising prices of land have contributed to a sharp jump in
consumption across agricultural equipment, media and even in financing.
StarAgri: bridging the supply-chain deficit in Indian agriculture
With Rs1.5 bn invested recently by IDFC Private Equity, StarAgri proposes to increase its
warehousing capacity from 0.6 mn tons to 5.0 mn tons by FY2017E. The company holds
commodities worth Rs15 bn in its warehouses and has procured commodities worth Rs5 bn in
FY2011. There is a significant demand for financing of warehouse commodities: (1) it helps in
financial inclusion as it reaches the small and marginal farmer, (2) helping him avoiding distress
sales. As banks get more comfortable with the processes of collateral management, this can be a
good way for the banks to reach out to the priority sector.
Meetings with Mahindra Finance, TAFE and Dainik Bhaskar affirm strong demand outlook
We met regional head of Mahindra Finance, TAFE and Dainik Bhaskar. All of them indicated that
they are growing at a strong pace in Rajasthan driven by rise in urbanization, good monsoons,
pick-up in construction/housing projects and pick-up in literacy levels. Mahindra Finance and TAFE
indicated that they are likely to grow their businesses by 50% yoy in FY2012 due to diversification
of portfolio/strong tractor growth.
Dainik Bhaskar indicated that Rajasthan market is growing at a reasonable pace driven by
improvement in literacy levels, favorable demographics and increase in urbanization. In Rajasthan,
the number of editions has increased to 33 from 16 over the past 6-7 years due to migration of
people from rural to urban Rajasthan. Hindi continues to be the most widely read language.
English papers are not growing at a very significant rate than Hindi papers despite lower
circulation.
Good monsoons and pick-up in construction/housing activity driving tractor growth
Rajasthan has seen the best rainfall in the past decade which has led to record production of
mustard and groundnut crop. Construction/housing projects are also being executed at a rapid
pace and we could see rapid rise in residential/commercial building work across the city.
Replacement cycle of tractors is also shorter in Rajasthan (around 3 years versus 5-6 years of allIndia average) which is also supporting demand
No comments:
Post a Comment