Thursday, July 25, 2013

The debt burden on Corporate India…. Role of Saturn


Monetary tightening and hike in interest rates are integral part of India’s macro-economic adjustment process. The pain is likely to be most severe in the sectors like metals, construction, Infra and Engineering, where firms are either over-leveraged or experiencing longer working capital cycle and deepening debt by paying high interest. There are companies who have shown growth in their EBITDA but the profit margins are shrinking down due the interest and debt burden.

While this fact is on every other news channel, what I analyzed is the role of Saturn … the planet related to debts in astrology and its role in this debt crisis that the Corporate India is facing. Honestly… I believe it’s a good time for a long term investor to start nibbling stocks in Metals, Engg., Infra and Construction space. One can systematically start accumulating stocks in these sectors say every month or fortnightly from now on till November 2014, this is the time when Saturn will move out of Libra and transit into Scorpio. Currently Saturn is in the 12th house from Scorpio and is opposing Aries zodiac. Mars rules Aries and Scorpio zodiacs and influences the Engg., Construction, Infrastructure, Defense  sectors. Metals are the most important raw material inputs to these sectors.

·         12th house as per astrology is considered as the house of expenses / debts / losses & realization

·         Saturn is opposing Aries and is in the 12th house from Scorpio in Libra Zodiac, Libra is ruled by Venus

·         Libra is ruled by Venus which is in Cancer Zodiac in the Indian horoscope (1947, Aug 15th, 00:01 AM, Delhi). This placement astrologically is considered Venus seated in enemy house

·         Saturn is exalted in Libra, Mars and Saturn are enemies

While there are many other factors, one of the prominent factors for the debt issues that are piling up and the delays in decision making, slowdown are all due to the placement of Saturn in 12th from Scorpio that is influencing the space ruled by Mars. One can argue that mars rules Aries too, but such effects are often not seen the whey Saturn is in pieces i.e.… 12th from Aries…, and yes, this is true one will not see such effects because Saturn is exalted in Libra and not in Pieces.

I wish to bring back the attention of the readers and reiterate that an intelligent investor will accumulate stocks in bad times and sell them in good times, while the fundamental and technical stock market analysis does not time the market accurately; the astrological angle of analyzing the same will add an edge in the investor’s artillery to help pick the stocks he/she often desires to hold in the portfolio for a long term.

My top 10 picks for a very long term for 7 to 10 years time frame are ...
  1. Tata Steel
  2. L & T
  3. BEML
  4. JSW Energy
  5. Va Tech Wabag
  6. Rel Infra
  7. Rel Power
  8. Tata Power
  9. BHEL and
  10. Thermax

One should systematically invest in these stocks and accumulate slowly at every dip till November 2014, as Saturn will move to Mars, it will stop the trouble, as it moves back to Capricorn in 2019 one will start seeing the money invested as a sapling growing into a tree and by 2024 one will see at least 12 to 15 times growth in their portfolio for sure.