2 weeks Ago
Abizer Diwanji , Founder, NeoStrat Advisors LLP , says people will take the decision on the basis of whatever their compulsions are. Institutional investors , especially from the US, will have bigger compulsions in their country, being answerable to their own investors, and they may take a different call. The primary consideration for a normal investor should be returns and the efficacy of cash flow.
As far as we have been covering banking, there is a reputational risk, there is a financial risk. But despite that, you have seen that Japanese lenders may continue to support Adani. How would these banks be assessing the situation according to you? Abizer Diwanji: First of all, banks are very focused on lending and lending to specific projects which have a high probability of cash flows, that is the most important thing.
Now, given the group's ability to construct and execute contracts well, I think from a credit risk perspective which is the main criteria on which lending is done, most people would take a view that there is no problem with the credit. If it is a governance issue or any other issue, those will be taken as a secondary aspect. They are important, but they will be taken as secondary aspects.
The Japanese banks have a focus on India as a country and the infrastructure build that they wish to finance, look at Japanese companies that have entered the financing space, there are a couple of them that are also bidders for Yes Bank as well as for IDBI Bank . Their credit focus on India is very bullish. And because that is bullish and India requires some large ticket deployments, I am not surprised that they would maintain a view till such time that any indictment is proven or reaches a serious stage.
How should investors assess this situation? I am sure you would have analysed the situation which is there. You would have seen the US charges which have come out in the open. How do you assess? Abizer Diwanji: As far as investors are concerned, investors need to be able to wait and watch.
Their issues are always going to be around, as I said, execution and the company's ability to deliver profits. Now from an equity investor perspective, it is going to be ability to deliver profits and return on capital. As far as debt is concerned, it is going to be again the ability to generate cash flows enough to pay debt obligations.
When investors look at it, most should look at it in an objective financial manner. Whoever tends to look at it beyond the financial manner, obviously has other compulsions, which forces them to take other decisions. So, I guess people will take the decision on the basis of whatever the compulsions are.
Institutional investors, especially from the US, will have bigger compulsions in their country, answerable to their own investors, and they may take a different call. A normal investor who only views returns and reviews efficacy of cash flows will base it on that. Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Advanced Strategies in Stock Market Mastery By - CA Raj K Agrawal, Chartered Accountant View Program Stock Trading Mastering Options Selling: Advanced Strategies for Success By - CA Manish Singh, Chartered Accountant, Professional Equity and Derivative Trader View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading Cryptocurrency Made Easy: Cryptocurrency Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading RSI Trading Techniques: Mastering the RSI Indicator By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Futures Trading Made Easy: Future & Options Trading Course By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Stock Trading A2Z of Stock Trading - Online Stock Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Complete Guide to Stock Market Trading: From Basics to Advanced By - Harneet Singh Kharbanda, Full Time Trader View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.
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