Indian Economy: News and Discussion

mahesh

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Power Grid Corporation of India Limited NSE:p Power Grid is about to go ex-dividend in the . You can purchase shares from the start of the September in order to receive the dividend, which the company will pay on the 9th of October.

Power Grid Corporation of India’s next dividend payment will be ₹4.04 per share. Last year, in total, the company distributed ₹10.00 to shareholders. Looking at the last 12 months of distributions, Power Grid Corporation of India has a trailing yield of approximately 5.5% on its current stock price of ₹182.3. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it’s growing.

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. That’s why it’s good to see Power Grid Corporation of India paying out a modest 49% of its earnings. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. The good news is it paid out just 22% of its free cash flow in the last year.

View attachment 58010

It’s encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don’t drop precipitously.
Power Grid Corporation of India has grown its earnings per share while simultaneously reinvesting in the business. Unfortunately it’s cut the dividend at least once in the past 10 years, but the conservative payout ratio makes the current dividend look sustainable. Overall we think this is an attractive combination and worthy of further research.

On that note, you’ll want to research what risks Power Grid Corporation of India is facing. For example, Power Grid Corporation of India has 2 warnings think you should know about.

Bhagwan Ucha.
i need more of these :p
 

Kumata

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The latest labour reforms passed have made it almost impossible for unions to hold stikes and gives the employer the power to hire and fire.

Great reforms overall this should now be followed by land reforms.
This have the potential of gross misuse as well.. i hope they have bought in safe guards as well to stop exploitations of employees...

Unions are needed IMO , not the bongs communist types but something on the lines of it's in europe to protect employee interests....

There is tons of exploitation in.... Every industry where there is a no representative body for employees.. for eg IT workers...
 
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Bhoot Pishach

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There is a pertinent risk towards farmers with all of these reforms . Govt now is not going to buy the farm produce but it will still gonna regulate export or inter state trade of the agri produce - to appease voters during elections by curbing price inflations - hence hurting export orders and chances of farmers able to grab lucrative prices .

This one lopsided regulation will hurt farmers. If govt ensures that they will not use these consumer appeasement during elections then I think it will be fine.
Govt will have to anyhow have buy for PDS - Public Distribution System.

Let all the other inefficient and corrupt buying right now done by FCI, be done by private players for catering markets and general public which is not dependent of PDS.

This will weed-out inefficiencies and corruption in present system.

Currently due to procurement vide Mandies and due to MSP farmers are growing only those crops which are massively procured under MSP system trough Mandies.

This has turned agriculture output in the country Heavy in Wheat, Rice, Soybean, Sugarcane heave but deficient in Pulses, Oilseed and other commodities deficient.

Let the market drive the agriculture to balance out the anomalies.
 

Haldilal

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Ya'll Nibbiars There were three companies to receive a very restrictive industrial license for automobile production in 1973. The license did not allow the prospective manufacturers to collaborate with foreign companies, or even to consult with them or import capital goods or components. Sanjay Gandhy was one of the other licensees, and even with extensive government support his Maruti project was unable to get off the ground until the government changed those conditions entirely. The other Licencee was Sunrise Automotive Industries Ltd. Later knewn as SIPANI. Nothing much has ever been heard regarding the third licensee, Manubhai Thakkar.
 

shade

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Good article, surprisingly by Gloomberg, considering there is no INDIA BAD MODI BAD bullshit, might be because the author is different this time.
 

Haldilal

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Ya'll Nibbiars Export data show faint signs of a revival India’s exports rose 8.3% to $18 billion, while imports declined 24.88% to $26.8 billion in the first three weeks of September.
 

Haldilal

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Ya'll Nibbiars India loses the infamous Rs 22000 cr retro tax case against Vodafone in international arbitratuon What’s super interesting is this was a unanimous verdict. Which means even the arbitrator appointed by Indian govt ruled in favour of Vodafone.
 

Haldilal

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Haldilal

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Ya'll Nibbiars
 

Haldilal

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Ya'll Nibbiars
 

Haldilal

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Ya'll Nibbiars
 
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Haldilal

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Ya'll Nibbiars Its silly to expect retro tax to hold up. Till such time babus can fight useless cases and do useless demolitions on public money and no personal repurcussion, this wont end.

Bhagwaan Uvacha.
 

ezsasa

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Ya'll Nibbiars Its silly to expect retro tax to hold up. Till such time babus can fight useless cases and do useless demolitions on public money and no personal repurcussion, this wont end.

Bhagwaan Uvacha.
GoI had no choice but to allow it go to arbitration at that time, remember the suit boot sarkaar narrative.
 

Haldilal

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Ya'll Nibbiars This capping is a sham. Suppliers have been told to bill cost of oxygen and handling charges separately. While the cost of oxygen per cylinder is shown as the capped 115, the handling charges are levied at 350 plus by suppliers. Net cost is still over 500 per cylinder.

Bhagwaan Uvacha.
 

Haldilal

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Ya'll Nibbiats adar poonawalla asking whether Govt is having 80K Cr money or not. As of now Poonawalla might aware about the vaccines they are manufacturing is still under in “trial” process. And btw Mr Poonawalla, Our economy is one of strongest economy!

Ya'll Nibbiars If 80000 cr are going to be given to one company, Income tax should be 98%. Surely charity minded people Dont want to profit from fellow humans disease. These are exceptional times.

Bhagwaan Uvacha.
 

Bhoot Pishach

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Ya'll Nibbiats adar poonawalla asking whether Govt is having 80K Cr money or not. As of now Poonawalla might aware about the vaccines they are manufacturing is still under in “trial” process. And btw Mr Poonawalla, Our economy is one of strongest economy!

Ya'll Nibbiars If 80000 cr are going to be given to one company, Income tax should be 98%. Surely charity minded people Dont want to profit from fellow humans disease. These are exceptional times.

Bhagwaan Uvacha.
Bhagwaanji,

If Aadar is saying Govt is ready to spend 80,000 Crores on vaccination for covid.

Try to understand what he wants to say.

He is in direct connection with Astrazenca which is conducting trials of vaccine and it might be possible that Preliminary findings of Oxford Vaccine is heading very near to completion (i.e. number of persons getting infection in the double blind trial is nearing the targeted numbers).

Hence this fellow is pushing the govt and wants to commit govt on assured numbers of quantity which govt can purchase.

India has population of roughly 135.00 Crores and 2 vials will be required for every person hence 270.00 Crore vials are required in India.

And he is saying 80,000 Crores is needed for 270.00 Crore vials which basically boils down to roughly Rs.270/- per vaccine vial, which he wants to sell the Govt. i.e. He has declared his price for the vaccine, what he minimum wants.

He has sensed business opportunity in this scenario.

He is putting pressure to make commitment for the vaccines.

See the catch, If Govt commits for say desired quantity then he will get the BUSINESS OPPORTUNITY FOR TURNOVER FOR 80,000 CRORE IN "ONE YEAR ONLY".

Catch here is :

If say Govt here commits say 1/4 of the desired quantity, this Aadar Guy will become free to sell the VACCINE AT MUCH HIGHER PRICES IN THE OPEN MARKET.

And he will also be free to export the VACCINES OUT OF INDIA AT HIS DESIRED PRICE, which Govt. dont commit for.

BC yah aadmi MAD se panga kayoun le raha hai.

When the Vaccine comes. MAD In a single move outright might regulate how much he can export and cap the cost of the Vaccine, weather purchased by Govt or sold in open market in India.
 

Tibarn

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10 of the 16 high-frequency indicators considered in Mint’s macro tracker were in the red in August, marking an improvement over the previous three months
....

There are signs of improvement in the consumer segment as well. Two of the four consumption indicators were in green in August and two in red. Passenger vehicle dispatches picked up in August to levels higher than last year. For the first time in 20 months, passenger vehicle dispatches grew year-on-year. Again, this growth was on a low base and partly in anticipation of higher festival sales. Retail sales remained subdued in August.
 

SKC

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Ya'll Nibbiars India loses the infamous Rs 22000 cr retro tax case against Vodafone in international arbitratuon What’s super interesting is this was a unanimous verdict. Which means even the arbitrator appointed by Indian govt ruled in favour of Vodafone.
This case should not have been filed in first placed. Even Jaitly ji said so in Parliament that they are not much willing to pursue this case. 22000 cr is absurdly large amount of fine imposed.
 

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