REPO RATE AND REVERSE REPO RATE

The term ‘Repo’ stands for ‘Repurchase agreement’. Repo is a form of short-term, collateral-backed borrowing instrument and the interest rate charged for such borrowings is termed as repo rate. It is the rate at which Reserve Bank of India lends money to commercial banks in India if they face a scarcity of funds. Commercial banks sell government securities and bonds to Reserve Bank of India with an agreement to repurchase the securities and bonds from Reserve Bank of India on a future date at a pre-determined price including interest charges. Current Repo Rate as on 21st, July 2022 is 4.90%.

Reverse repo as the name suggests is an opposite contract to the Repo Rate. It is the rate at which the Reserve Bank of India borrows funds from the commercial banks in the country. In other words, it is the rate at which commercial banks in India park their excess money with Reserve Bank of India usually for a short-term. Current Reverse Repo Rate as on 21st, July 2022 is 3.35%.

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THESIS ON CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL)

Central Depository Services (India) Limited (CDSL) is very good stock to hold for long-term investors and I am presenting a thesis on it which is as follows: · Its fundamentals are very strong and impressive which can be understood from the following points: Ø It is a debt free company. Ø It has delivered a good profit growth of 24.10% CAGR over last 5 years. Ø It has been maintaining a healthy dividend payout ratio of 42.69%. Ø It has a healthy Cash from Operations. Ø It has a healthy ROE and ROCE of more than 20%. Ø It has a very healthy Operating and PAT Margins of 75.51% and 58.55% respectively as per the financials of F.Y. 2020-21. · The penetration to equity markets in India is still very low as roughly about 3% of India’s population invests in equity markets as compared to 55% in US, which suggests that there’s lots of headroom for India’s stock marketplace p...

UNDERSTANDING ESG FRAMEWORK

Most investors focus on the profit generating ability of a business to make investment decision. However, over the last few years, the societal discussions about companies and businesses have also started focusing on sustainable development, and corporate social responsibility. This has given traction to investment theme that is focused on Environment, Social and Corporate governance (ESG). Initially this framework was used by handful of “Impact” investors. But this framework has gradually gained traction as these frameworks also provide commercial value. Under this framework investors evaluate companies based on these criteria: (i) How does the company’s activities affect the environment? Companies with low carbon emission and low contributors to pollution rank better than others. (ii) What are the activities that the company perform in terms of social development? This includes focus on human rights, gender equality and many such social factors. Companies that contri...

THESIS ON JAMNA AUTO INDUSTRIES LIMITED

ABOUT THE COMPANY The company was incorporated in 1954. It manufactures high-quality suspension solutions for a wide range of commercial vehicles. Its product range includes Leaf Springs, Parabolic Springs, Lift Axles & Air Suspensions. It is a well- known brand in automotive Industry catering to all OEM's, Replacement Market and Export Market. For Springs – they have the highest annual capacity of over 3,00,000 MT. It offers a complete line of suspension solutions for Indian commercial vehicles ranging from tippers, tractors, trailers, ICVs, and Buses. It caters to OEM, after market, and overseas markets. MANUFACTURING CAPACITY The company has 10 plants all over India, manufacturing high quality suspension systems. The plants comprise state-of-the-art machinery and advanced technologies. All the plants are ISO certified, adhere to international safety standards, and are strategically located in close proximity to OEMs ...

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