Sugar stocks have been fired up lately on expectations that the industry is set to turn a corner. While the sector has seen many false dawns on reform hopes in the past, the changes we are seeing this time around could turn out to be the real deal.
In this article, we’ll explore where risk premiums come from in debt and equity. This is important because risk premiums are not fixed and change with time. So, if you base your return expectations wrong, you may wind up with a different corpus that you originally planned to.
The most popular of such endowment policies is a policy called the “LIC New Jeevan Anand”. It makes a simple, attractive proposition to its policyholders – pay a premium for ‘n’ number of years and get a fixed sum assured PLUS bonus at the end of this period. AND, when the policyholder dies post this period, the family will get the sum assured again. You benefit when you live and your family benefits when, eventually, you die!
Glenmark Life Sciences (GLS) is a generic API (Active Pharmaceutical Ingredients) manufacturer and a subsidiary of Glenmark Pharmaceuticals. The Glenmark Life Sciences IPO is worth Rs. 1,514 crore, comprising fresh issue of Rs.1,060 crore and an offer for sale worth Rs.454 crore by Glenmark Pharmaceuticals. Should you invest in the IPO of this high-value, non-commoditized API player?
There are certain characteristics which make evaluating banking and finance stocks different from others which produce goods and services. Money cannot be lent to someone unless there is an inflow by way of capital or debt. Since it is not practical to lend only from capital, borrowing (or leverage) is the sustaining food for this business. Naturally in using this leverage, there are good and bad apples.