Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Bangladesh in 2014

with 4 comments

Broader market index returned 14%, Top Large Caps over 100%, ditto for consumer brands like Bata, Marico, Reckitt Benckiser, Glaxo, Mobil and few more.

Market Cap to GDP ratio is still favorable at 24%
Despite the stellar returns this year, one can expect decent returns in equities in Bangladesh ~ 20% in local currency, relatively speaking. Top consumer brands offer 30% – 50% ROE with great cash flow, statistically cheap multiples.

Low crude will keep the BDT/USD currency equation stable (biggest elephant in emerging market investing). Large immigrant population and remittance, an added bonus. 

Market is gradually becoming a diverse one with 547 listed companies — 17 new IPO in 2014, likely to attract foreign investment.

Banking could rebound this year, biggest weight which did not perform in 2014, 

Sectoral Return

Biggest five large caps did not fail to compound

IPOs not for investors (only traders)

Dhaka stock exchange also introduced new trading software on exchange on 11th of December 2014 in collaboration with NASDAQ OMX, introduced T+2 ( instead of T+3) reducing the cycle. 

Corporate profitability to increase in 2015 on back of low inflation, increase Govt. employee salaries, low oil input price. The country is a fertile ground for multibagger opportunities.
Disclosure: Invested in stocks discussed. Views are personal notions and do not represent any organisation or company. I am not an investment adviser. Investment in stock market can (and many a times do) result in loss of principal capital.

Written by amitdipsite

December 31, 2014 at 11:13 pm

Posted in Uncategorized

4 Responses

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  1. Ever since Peter Lynch wrote his book One Up On Wall Street, it has become impossible to find a Undertaker Stock (Cemetery, Funeral home)

    Had found one last year at 27 times earnings, Invocare (near monopoly) in Australia

    Found another near monopoly in burial/death in one of the 53 countries of Africa, growth isn't that great at 10%, cash flows ~10% of market cap, PE 10…more later

    Amit Arora

    January 3, 2015 at 8:40 am

  2. ZAMBIA runs trade surplus, currency depreciation is benign to USD, has number of MNCs listed and a couple of monopolies

    Population is rather small but looks as good as Nigeria and Kenya for investment returns

    Amit Arora

    January 3, 2015 at 11:49 am

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