OMKARA CAPITAL – DAILY NEWSLETTER (30th July 2026)
All the hot money, which was chasing very few ideas, riding on a maximum on 5-10 stocks in the world are now getting hit hard.
Fed hold rates. Yields rise. Dollar down. USA & Iran still fighting. India remains strong.
FIIs have started investing in Indian markets – yesterday cash inflows was Rs 3k crore amid all news and noise: cycle is turning for INDIA
Some of biggest truths in the markets are “mean reversion” & “valuations”.
Basic investment principles never change in the stock markets, only narratives change with greed & fear overtaking short-term and noises/ media.
There was a time when everybody used to talk about the Russian-Ukraine war. Then came a time when it was all about US tariffs. Then came a time when it was all about AI trades and frenzy. Then, of course, USA and Iran. Things do settle with time. Valuations create opportunities on extremes.
All the hot money, which was chasing very few ideas, riding on a maximum on 5-10 stocks in the world are now getting hit hard.
And suddenly, things are turning for India. And now even we are getting a lot of queries to invest in our fund from overseas. This kind of interest was just absent or ignored 3-6 months back.
I am not worried about USA markets reaction as it was coming. Fronth is getting cleaned. Money will shift to India. Slowly and steadily.
Just think (and imp)
• In the past 20 years, India has never been more undervalued versus other Emerging Markets
• In the past 20 years, India has never been more underweight in global investors portfolios
• India currently trades at the lowest point in the last 25 yrs with respect to the MSCI EM index in terms of P/B.
Now, even if FIIs go neutral on India, there will be gush of liquidity in the Indian stock markets. And once you burn hands in frenzy trade – sanity comes and mind will work.
Look at some earnings:
- Asian Paints: delivering after ages: Q1 18% y-y sales growth was above consensus estimates of c.12.5%/14%;
- Eicher Motors: 1Q consolidated revenue was up 32% y-y, 4-5% higher than consensus & EBITDA was also up 32% y-y (cruising and delivering)
- Colgate – smiles are coming back after long time. double-digit sales/OP growth on the horizon. Volume/sales growth of 8.5% / 11.8% y-y vs estimates of 6% / 8.4%
- V-Guard: Q1 EBITDA ₹191 cr (+54.5% YoY) — margin 10.5% (+210 bps YoY). PAT ₹130 cr (+76.4% YoY)
- TBO Tek Ltd: Q1FY27 revenue grew 81% YoY to 926 cr. EBITDAM at 14.9% (+42 bps YoY). Adj. PAT at 83 cr (+50.93% YoY)
- Indostar Cap: 1Q Pre-provision operating profit ₹93 cr (+392% YoY, -0.5% QoQ)
- ACME Solar 1QFY27: strong 60% yoy EBITDA growth on the back of BESS capacity
Waaree earning was weak - margins(adjusted for tariff rebate) came in much lower than expectations with EBITDA margins at ~14.4% vs expectation of 19.3%.
Warm regards,
Omkara Capital Private Limited
www.omkaracapital.in
Disclaimer: This newsletter is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor before making any investment decisions.
