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Economic Times
3 days ago
- Business
- Economic Times
India crowned top destination for stock compounders, says BofA; lists 9 structural themes
Bank of America Securities sees India as best for stock growth due to nine factors. India's economy is growing fast. According to the International Monetary Fund, India is projected to be the fastest-growing major economy in 2025 and 2026. Over the past 30 years, Indian markets have delivered USD-based returns at a 7% CAGR, second only to the U.S. Notably, this performance has been driven primarily by earnings growth rather than valuation increases, distinguishing India on the global stage. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Nine Structural Themes Fueling India's Growth Outlook BofA outlined nine long-term themes that make it constructive on India's equity outlook: Infrastructure Boom: India is on track to add more infrastructure between FY15 and FY30 than it did in the previous 65 years, with a projected 3.25x economic multiplier according to an RBI study. Productivity Gains: Improvements in logistics, energy efficiency, and capital-output ratios suggest a productivity renaissance akin to the 2003–07 boom years. Digitization: With more than 900 million internet users and ultra-low data costs, India has witnessed a 140x surge in digital transactions in eight years, fueling a fast-growing digital economy and the fourth-largest venture capital ecosystem globally. Financialization: Over 90% of Indians now have bank accounts, up from 35% in 2011, but formal credit penetration remains low at 11–13%, providing significant room for expansion in financial services. Household Savings Strength: Households contribute over 60% to the national savings pool. Improving balance sheets and easing inflation are expected to further support domestic capital formation. Discretionary Consumption Shift: As per capita income nears $5,000 by 2030, the share of discretionary consumption is expected to rise to 43%, up from the current 36%, driven by premiumization and a growing middle class. Formalization Push: Reforms like GST, UPI and e-invoicing are driving growth in the formal sector, broadening the tax base and creating scale benefits for organized players. Improving External Position: PLI schemes, labor reforms, and infrastructure investment could transform India from a current account deficit country into one running surpluses. Decarbonization Momentum: India has already invested $216 billion in clean energy over the last decade, and is expected to deploy another $270 billion by FY30. Market Outlook: Long-Term Conviction, Short-Term Caution In a powerful long-term endorsement of India's equity markets, Bank of America ( BofA ) Securities has ranked the country as the world's top hunting ground for stock compounders , driven by a confluence of nine structural growth engines. While bullish on India's decade-long trajectory, the brokerage struck a cautious tone on near-term market prospects, citing elevated valuations and global is expected to be the fastest-growing large economy in 2025 and 2026, according to the International Monetary Fund. Over the last three decades, the Indian market has delivered USD-based returns of 7% CAGR—second only to the US. More significantly, these returns have been powered by earnings growth rather than valuation expansion, setting India apart of America's strategist, Amish Shah said the confluence of nine structural drivers is likely to position India for sustained economic and corporate earnings growth. He emphasized that India ranks as the top country globally in providing a high number of stock compounders, and that this trend is likely to persist.'Hence, India ranks as the top country globally to provide high number of stock compounders, a trend we expect to continue. However, we are cautious on markets near term as valuations seem full & markets are ignoring risks of likely slowing global growth,' Shah wrote in a strategy highlighted that India's outperformance is built on strong fundamentals, regulatory consistency, corporate execution, and a vast domestic consumption base. With India projected to become the world's third-largest economy this decade—surpassing Germany—the macro setup offers a compelling backdrop for this strong structural case, BofA remains cautious on India's equity markets in the short term. It expects GDP growth to come in at 6.3% in FY26, slightly below the Reserve Bank of India's 6.5% forecast, citing only a shallow revival in GDP, capex, and brokerage has retained its year-end Nifty target at 25,000, indicating no further upside after the recent rally. It flagged seven emerging risks that warrant caution on large caps and broader markets, although specifics were not stance is clear: India's long-term equity story is underpinned by deep structural change and remains one of the most attractive globally. But in the near term, stretched valuations and global headwinds demand a more conservative approach.
Time of India
3 days ago
- Business
- Time of India
India crowned top destination for stock compounders, says BofA; lists 9 structural themes
In a powerful long-term endorsement of India's equity markets, Bank of America ( BofA ) Securities has ranked the country as the world's top hunting ground for stock compounders , driven by a confluence of nine structural growth engines. While bullish on India's decade-long trajectory, the brokerage struck a cautious tone on near-term market prospects, citing elevated valuations and global risks. India is expected to be the fastest-growing large economy in 2025 and 2026, according to the International Monetary Fund. Over the last three decades, the Indian market has delivered USD-based returns of 7% CAGR—second only to the US. More significantly, these returns have been powered by earnings growth rather than valuation expansion, setting India apart globally. Bank of America's strategist, Amish Shah said the confluence of nine structural drivers is likely to position India for sustained economic and corporate earnings growth. He emphasized that India ranks as the top country globally in providing a high number of stock compounders, and that this trend is likely to persist. 'Hence, India ranks as the top country globally to provide high number of stock compounders, a trend we expect to continue. However, we are cautious on markets near term as valuations seem full & markets are ignoring risks of likely slowing global growth,' Shah wrote in a strategy note. Shah highlighted that India's outperformance is built on strong fundamentals, regulatory consistency, corporate execution, and a vast domestic consumption base. With India projected to become the world's third-largest economy this decade—surpassing Germany—the macro setup offers a compelling backdrop for equities. Also read | Smallcap stocks are doubling money like it's 2024 once again. Should you jump in? Nine Structural Themes Fueling India's Growth Outlook BofA outlined nine long-term themes that make it constructive on India's equity outlook: Infrastructure Boom: India is on track to add more infrastructure between FY15 and FY30 than it did in the previous 65 years, with a projected 3.25x economic multiplier according to an RBI study. Productivity Gains: Improvements in logistics, energy efficiency, and capital-output ratios suggest a productivity renaissance akin to the 2003–07 boom years. Digitization: With more than 900 million internet users and ultra-low data costs, India has witnessed a 140x surge in digital transactions in eight years, fueling a fast-growing digital economy and the fourth-largest venture capital ecosystem globally. Financialization: Over 90% of Indians now have bank accounts, up from 35% in 2011, but formal credit penetration remains low at 11–13%, providing significant room for expansion in financial services. Household Savings Strength: Households contribute over 60% to the national savings pool. Improving balance sheets and easing inflation are expected to further support domestic capital formation. Discretionary Consumption Shift: As per capita income nears $5,000 by 2030, the share of discretionary consumption is expected to rise to 43%, up from the current 36%, driven by premiumization and a growing middle class. Formalization Push: Reforms like GST, UPI and e-invoicing are driving growth in the formal sector, broadening the tax base and creating scale benefits for organized players. Improving External Position: PLI schemes, labor reforms, and infrastructure investment could transform India from a current account deficit country into one running surpluses. Decarbonization Momentum: India has already invested $216 billion in clean energy over the last decade, and is expected to deploy another $270 billion by FY30. Market Outlook: Long-Term Conviction, Short-Term Caution Despite this strong structural case, BofA remains cautious on India's equity markets in the short term. It expects GDP growth to come in at 6.3% in FY26, slightly below the Reserve Bank of India's 6.5% forecast, citing only a shallow revival in GDP, capex, and consumption. The brokerage has retained its year-end Nifty target at 25,000, indicating no further upside after the recent rally. It flagged seven emerging risks that warrant caution on large caps and broader markets, although specifics were not detailed. BofA's stance is clear: India's long-term equity story is underpinned by deep structural change and remains one of the most attractive globally. But in the near term, stretched valuations and global headwinds demand a more conservative approach.
Express Tribune
5 days ago
- Business
- Express Tribune
PSX rises modestly amid delay in budget
Listen to article The Pakistan Stock Exchange (PSX) witnessed a volatile trading week as investors remained cautious ahead of the FY26 budget announcement, now rescheduled for June 10, 2025, amid ongoing IMF negotiations. Despite initial uncertainty, the KSE-100 index managed to post a modest weekly gain of 0.49%, closing at 119,691 points, supported by positive developments on the economic front including China's pledge to refinance $3.7 billion in commercial loans and a successful T-bill auction that raised Rs772 billion. However, foreign investors continued to offload their positions, with net outflows of $5.65 million, while local participants stepped in to absorb the selling pressure. On a day-on-day basis, the PSX started the week on a bearish note on Monday as the KSE-100 index fell 882 points, or 0.74%, settling at 118,221 over investor caution ahead of the federal budget and the delay in IMF's approval of circular debt settlement plan. On Tuesday, the market closed modestly higher with a gain of 112 points as the index oscillated in a narrow band throughout the day. Investors were wary ahead of the budget presentation, although cement stocks rose, driven by hopes for announcement of a real estate package. The bourse opened with renewed vigour on Thursday following a day's closure to mark Youm-e-Takbeer, which reflected the nation's nuclear achievements. The KSE-100 posted a notable rise of 638 points. Finally, the PSX closed the week on a bullish note on Friday, lifted by strong gains in blue-chip oil, banking and fertiliser stocks amid growing optimism about the upcoming budget measures. The index surged 720 points and settled at 119,691. Arif Habib Limited (AHL) wrote that the KSE-100 index displayed mixed trends throughout the week, beginning on a negative note due to uncertainties surrounding the budget rollout. On the economic front, China committed to refinancing $3.7 billion of commercial loans for Pakistan. Moreover, Nepra approved K-Electric's multi-year tariff at Rs39.9/unit and a 14% USD-based return on equity. The government successfully raised Rs772 billion through a T-bill auction, exceeding its target of Rs650 billion. Cut-off yields declined across all tenors, falling by 9 to 15 basis points (bps). The State Bank's reserves climbed up by $70 million to $11.5 billion. The market closed at 119,691, depicting a rise of 588 points, or 0.49% week-on-week (WoW), AHL said. Sector-wise, the positive contribution came from cement (317 points), fertiliser (249 points), power generation and distribution (148 points), commercial banks (84 points) and refinery (80 points). Meanwhile, the sectors that contributed negatively were automobile assembler (105 points), oil and gas exploration companies (97 points), technology and communication (53 points), food and personal care (46 points) and oil and gas marketing companies (43 points). Scrip-wise, the positive contributors were Meezan Bank (230 points), Fauji Fertiliser Company (210 points), Lucky Cement (159 points), Pakgen Power (80 points) and DG Khan Cement (70 points). Average volumes arrived at 662 million shares (up 34.6% WoW) while average traded value settled at $78.9 million (down 6.5%), AHL added. "The KSE-100 index recovered during the week, closing at 119,691 points (up 0.5% WoW)," said Syed Danyal Hussain of JS Research. Foreign investors remained net sellers during the week, with an outflow of $5.57 billion, which was offset by local buying. The week commenced with the IMF concluding its visit to Pakistan without reaching an agreement on certain budget items, leading the government to reschedule the budget presentation to June 10, 2025, he said. Virtual negotiations were continuing, with both sides focusing on measures to enhance tax revenues and curtail expenditures. Meanwhile, Hussain added, China reaffirmed its commitment to refinancing $3.7 billion in commercial loans denominated in renminbi before the end of June. In other news, the State Bank's net buying from currency markets reached $223 million in February 2025 to further strengthen foreign exchange reserves, bringing the cumulative purchases to $5.9 billion during 8MFY25.
Korea Herald
15-05-2025
- Business
- Korea Herald
AI-Led Growth Fuels Appier's Strong FY25 Start with 31% FX-Neutral Revenue Increase and Profit Expansion
Robust growth, expanding margins, and record-low churn reinforce product stickiness and long-term value in Appier's AI-driven business Highlights and achievements for Q1 2025 TOKYO, May 15, 2025 /PRNewswire/ -- Appier Group Inc (TSE: 4180), henceforth referred to as Appier, today announced its financial earnings results for the first quarter of fiscal year 2025, ended March 31, 2025. The company reported robust growth across regions, continued margin improvement, and record-low churn, underscoring product stickiness and durable customer expansion. Diversified Growth Across Regions and Verticals Powers Strong Q1 Performance Appier's revenue reached JPY 9.4 billion, marking a 27% YoY increase, or 31% growth on an FX-neutral basis, reflecting resilient demand and expanding enterprise adoption. Northeast Asia (NEA) grew 37% YoY, fueled by strong momentum in both Japan and Korea, particularly in the e-commerce sector. The US and EMEA delivered 32% YoY growth, building on a strong prior-year base through vertical diversification and sustained traction in digital content. Growth remained well-balanced, with 57% of incremental revenue driven by existing customers, reinforcing business scalability, deeper enterprise penetration, and strong retention. The remaining 43% came from new customers, fueled by strategic wins in digital content and e-commerce verticals. The client base expanded by 15% YoY, supported by strong new customer acquisition across regions and industries. Quarterly Average Revenue Per Customer(ARPC) increased 10.1% YoY on an FX-neutral basis, maintaining strong momentum. Margin Expansion Driven by Operational Leverage and AI Efficiency Gross profit rose 26% YoY to JPY 4.8 billion, with FX-neutral gross margin improving to 52.3%, driven by ongoing enhancements in personalization algorithms and new GenAI capabilities, including AI-powered algorithm enhancements. Excluding one-time costs related to the acquisition, operating income in Q1 nearly tripled to JPY 195 million, with a 2.1% operating margin. EBITDA grew 45% YoY to JPY 1.1 billion. These results reflect strong operating leverage and disciplined execution across the business. Operational efficiency improved, with OPEX-to-revenue down 1.8 percentage points YoY, driven by disciplined R&D, streamlined AI development, and a lean cost base. Customer retention hit a record high, with churn at a historic low and USD-based LTM Net Revenue Retention(NRR) steady at 118.7%, highlighting strong enterprise stickiness and ROI from Appier's AI-native solutions. Fueling Enterprise Marketing with Data and Creativity The integration of acquired towards the end of FY25 Q1, is expected to deliver immediate value across Appier's product portfolio, including Ad Cloud, Personalization Cloud, and Data Cloud. "This is more than an acquisition — it's a catalyst for accelerating product innovation and expanding our scope from data-driven digital marketing decisions to creative intelligence," said Chih-Han Yu, CEO and Co-founder of Appier. "This integration allows us to apply a force multiplier that deepens our AI advantage and reinforces our leadership in enterprise marketing." Appier blends analytical precision with creative power, helping brands move faster, think smarter, and scale imagination globally — from Asia to Europe to the U.S. Built for Sustained Growth Appier has received an AA rating from MSCI ESG Ratings, recognizing its strong performance in managing environmental, social, and governance (ESG) factors. This places us among the top-rated companies in our sector and reflects Appier's commitment to responsible growth, sustainable innovation, and transparent governance, reinforcing the long-term value we strive to deliver to shareholders, customers, and society.
Shafaq News
11-04-2025
- Business
- Shafaq News
Gold bolts past key $3,200 mark on dollar slide, safe-haven flows
Shafaq News/ Gold prices breached the crucial $3,200/oz level for the first time on Friday, fuelled by a weaker dollar and an escalating trade war that sent investors rushing toward safe-haven assets. Spot gold was up 0.6% at $3,192.79 an ounce, as of 0555 GMT. Bullion scaled an all-time peak of $3,219.84 earlier in the session, and has gained around 5% this week. "The rapid weakening of the U.S. dollar seems to be the main driver of gold's rebound at the moment. That seems to reflect an ongoing exodus from USD-based assets, with stocks and bonds' selloff amid tariff policy uncertainty," said Ilya Spivak, head of global macro at Tastylive. The dollar was down nearly 1% against its major peers, making greenback-priced bullion cheaper for overseas buyers. Major stock indexes also fell after U.S. President Donald Trump ratcheted up tariffs on Chinese imports to 145%, but hit a 90-day pause on previously announced tariffs for dozens of countries. China has been matching Trump's tariff hikes, sparking fears that Beijing could push duties on the U.S. beyond the current 84%. "$3,500 is the next round number people will be looking at. I suspect we won't get there immediately or without bumps along the way," financial market analyst Kyle Rodda said. Apart from tariffs, central bank demand, expectations of interest rate cuts by the Federal Reserve, geopolitical instability in the Middle East and Europe, and increased flows into gold-backed exchange-traded funds also fuelled the metal's rally this year. U.S. consumer prices fell unexpectedly in March but inflation risks are tilted to the upside, data showed. Traders now bet that the Fed will resume cutting rates in June and probably reduce by a full percentage point by the end of 2025. Spot silver was steady at $31.2 an ounce, while platinum eased 0.2% to $936.55. Palladium gained 0.7% to $914.55.
