Strategy Boffins

TCS and Infosys 2024 Q3 results

Before Market Opens

In the third quarter of the financial year 2024, Infosys and Tata Consultancy Services (TCS) showcased distinct financial performances. Infosys reported an EPS of 18 cents, aligning with analyst estimates, and a revenue of $4.66 billion, slightly above expectations. However, the company experienced a 7.3% drop in net profit and a decline in operating margin to 20.5%. Infosys revised its full-year revenue growth to 1.5%-2.0% and announced significant deal signings worth $3.2 billion, alongside an acquisition to bolster its Chip-to-Cloud strategy. Attrition improved to 12.9%. In contrast, TCS reported a 2% increase in net profit and a 4% rise in revenue, with an operating margin of 25%. The company declared a dividend of Rs 27 per share and maintained a comfortable attrition rate of 13.3%. TCS continued investing in technologies like Generative AI and reported a robust order book with a TCV of $34.1 billion. TCS shares showed a positive trend, closing up 0.61% on the BSE. Both companies demonstrated resilience and strategic growth in a challenging market environment.

TCS and Infosys 2024 Q3 results

Buffett Secrets Revealed

Situation Report

“Buffett Secrets Revealed” is a guide to disciplined, value-based investing, drawing on the principles of Warren Buffett. It offers practical tools and strategies for individual investors to make better investment decisions, emphasizing long-term growth and stability over short-term speculation.

20% increase in Cochin Shipyard’s share price

Before Market Opens

Cochin Shipyard’s shares surged 20% due to a stock split and strong growth prospects. The split made shares more accessible, while impressive performance, including securing a significant defense contract and a robust order book, bolstered investor confidence, reflecting the company’s expanding presence and potential in the shipbuilding and defense industries

20% increase in Cochin Shipyard’s share price

Jyoti CNC Automation IPO

Before Market Opens

The Jyoti CNC Automation IPO is looking to raise Rs 1,000 crores through a fresh issue of 3.02 crore shares. It opened for subscription in early January 2024 and is expected to list on BSE and NSE. The IPO’s price range is set between ₹315 to ₹331 per share. Jyoti CNC Automation, established in 1991, manufactures CNC machines and serves a diverse client base including ISRO and Tata Advances System. As of mid-2023, it had a significant production capacity and a substantial order backlog. The company experienced a notable increase in revenue and profit after tax in the financial year ending March 31, 2023.

Jyoti CNC Automation IPO is looking to raise Rs 1,000 crores

The Multi-Manager Hedge Fund Industry

Strategy Journal

The Multi-Manager Hedge Fund Industry: A Comprehensive Overview of Strategies, Performance, and Emerging Challenges

– Multi-manager funds have been the fastest-growing and most profitable segment in the global hedge fund industry over the past five years.

Challenges
1. Capacity Constraints: The industry is grappling with limitations on how much they can grow.
2. Talent War: The competition for skilled professionals is fierce and expensive.
3. High Fees: Investors are questioning the high fees and long lock-in periods.
4. Regulatory Scrutiny: Regulatory bodies like the SEC are paying closer attention due to the industry’s growing influence.
5. Performance: Recent performance has not been as strong, and there are concerns about the sustainability of the multi-manager model.

Business Model
– Multi-manager funds employ a large number of specialized traders.
– They use a “pass-through” expenses model, passing on all costs to investors.
– Despite representing only 8% of the hedge fund industry’s assets, they account for 27% of the industry’s holdings in U.S. equities.

Future Outlook
1. New Entrants: Despite high barriers to entry, new firms are entering the market.
2. Talent Management: Firms are trying to cultivate talent internally to mitigate the high costs of hiring.
3. Performance Pressure: With higher risk-free rates, the performance needed to justify high costs is becoming elusive.
4. Leverage Risks: The use of borrowed money to amplify returns could backfire, echoing the collapse of LTCM in 1998.

Bankers Grapple with Inflation in Jackson Hole

Strategy Journal

Central Bankers Grapple with Inflation Challenge Amid Uncertain Economic Landscape

  • The Federal Reserve’s annual gathering is hosted by the Kansas City Fed in Jackson Hole, Wyoming.
  • The federal funds rate has crested above 5 percent.
  • Unemployment remains near 50-year lows.
  • Fed offi­cials’ own estim­ates of the neut­ral rate — also called R-star
  • The neutral rate of interest (R-star) is estimated around 2.5 percent.
  • The median forecast for R-star is around 2.5 percent, adjusted for inflation at 2 percent.
  • Some believe a soft landing, where inflation comes down without a recession, is possible.
  • Others are more skeptical, with predictions of a “hardish” landing that could lift the unemployment rate to at least 5 percent.

Stocks to Watch this week – 16 May 2022 – 20 May 2022 – India

Before Market Opens

Stocks to Watch this week – 16 May 2022 – 20 May 2022 : Tata Elxsi Limited, Gujarat Gas Ltd
Avanti Feeds Ltd, Gujarat Ambuja Exports Limited, IFB Industries Ltd, Ratnamani Metals and Tubes Limited, MATRIMONY.COM Ltd, Kalyan Jewellers India Ltd, Godrej Consumer Products Limited

Stocks to Watch this week – 16 May 2022 – 20 May 2022 – India

Stocks to Watch this week – 9 May 2022 – 13 May 2022 – India

Before Market Opens

Stocks to Watch this week – 9 May 2022 – 13 May 2022 : Paisalo Digital Ltd, Future Consumer Ltd, Hikal Limited, Gujarat Mineral Development Corpn Ltd, ABB India Ltd, Transport Corporation of India Limited, Cosmo Films Ltd, Time Technoplast Limited, Oil & Natural Gas Corporation Limited

Stocks to Watch this week – 9 May 2022 – 13 May 2022 – India

Stocks to Watch this week – 2 May 2022 – 6 May 2022 – India

Before Market Opens

Stocks to Watch this week – 2 May 2022 – 6 May 2022 : Shanthi Gears Ltd, Chennai Petroleum Corporation Limited, Hindustan Oil Exploration Company Ltd, Huhtamaki India Ltd, Dolat Algotech Ltd, Schaeffler India Ltd, Jai Corp Ltd, Siyaram Silk Mills Ltd, Apcotex Industries Limited

Stocks to Watch this week – 2 May 2022 – 6 May 2022 – India

Stocks to Watch this week – 25 Apr 2022 – 29 Apr 2022 – India

Before Market Opens

Stocks to Watch this week – 25 Apr 2022 – 29 Apr 2022 : Mangalore Refinery & Petrochemicals, Chennai Petroleum Corporation, Bajaj Hindusthan Sugar, Sunflag Iron & Steel, Borosil Renewables, Bombay Dyeing, Schneider Electric Infra, HBL Power Systems, Time Technoplast

Stocks to Watch this week – 25 Apr 2022 – 29 Apr 2022 – India

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