Modi Era’s Century - An Analysis: Dolat Capital

Dolat Capital Report

The Modi government 2.0 has completed its two-third of the second term, and will be setting its agenda towards the general elections due in April 2024. This bid, if successful, will be unprecedented for more reasons than just an odd one. Political opinions have varied on the likelihood of his succeeding or not, but there is overwhelming consensus that he is the front-runner by a good margin.

How does the Modi leadership performance look like as it is on the verge of completing 100 odd months?

We take a look at the big picture through the macro aggregates. Not all of them look superlative but the underlying seems much stronger - eg Nifty performance seems muted but now the stage seems set for earnings to compound at mid teens.

A thorough clean up of corporate and bank balance sheets is giving high confidence to the participants to aim for accelerating growth - and this is largely funded by operating cash flows or debt levels which will be far better in quality.

Third the formalisation of the economy. The goods and services tax kick off may have been a bit abrupt, but the way it is trending especially post Covid, signifies a marked shift for the economy in favor of better compliance, tracking and reporting.

There is so much to argue for and against the 100 months odd for the Modi era.

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