Macroeconomic situation

• India to stay one of the fastest growing economies in the world

• India to almost double GDP by 2030 and it has outperformed its counter parts

• Inflation continues to go downwards

• Positive government support for the economy

• Structural reforms like PLI and make in India schemes to propel growth for long term

• Key growth drivers for the economy include largest population, favourable demographics and better financial situations for middle class

• Some challenges include USD vs INR, dependancy on imports, geopolitical risks and more

Capital markets in India

• Equity markets reaching record levels in terms of Market cap.

• Demat accounts have been growing at a very fast rate

• India has one of the most new listing in the world

• Sectors like EV, Semi conductors and electronics expected to dominate investments

• Growing investments in AIF

• Key growth drivers for capital markets include increasing smartphone penetrations, Strong support from government, increase in the amount of investors and more.

• Strong amount of IPOS because of the surge in equity markets

• Growth drivers for equity capital markets include macroeconomics factors and Rising demand for corporate debt and equity issuances

• India has noticed a considerable private equity deal decline since 2021 and IT sector has the most amount of deals 

• Similar to private equity deals mergers and acquisitions have also declined since the peak in 2022

• Growth drivers for PE and M&A markets include sectors consolidations, rising presence of private equity funds and more

Structured finance and debt syndication

• Wholesale finance is lending services which is both short term and long term but mainly long term 

• NBFC funding to real estate has gone up considerably

• Banks dominate the wholesale credit industry

• Growth opportunities for wholesale credit industry are revival of capex cycle, diversification of credit and the institutional equity industry. 

Turnover of Cash Equity and Equity Derivative segments

• Witnessed very strong growth

• Major share is non proprietary clients

• Mutual funds witnessed the highest inflows

• Share of individual investors dropping

Broking industry

• Strong growth aided by capital market

• Driven by institutional investors

• Growth drivers for the industry include demographics to aid growth in capital markets, good growth so more interest and rising AUM and many more.

Asset Management industry

• Good growth in AUM despite less Penetration

• Signs showing investor preference in equity mutual funds

• Open ended funds contribute to 99.5 percent of the AUM

• Growth of AUM to grow strongly driven by factors such as rising popularity of SIP, higher disposable income and deeper penetration

Investment and distribution channels

• Non associate distributors have a majority compared to associate distributors

• Top 10 of the mutual fund distributors got close to 48 percent of the industries commission

• Portfolio management services are offered by many people and are customised and tailored investments in the market. This is gaining traction.

Dam capital is specialised in 2 areas which are investment banking which they get 67.2 percent of their revenue from and stock broking from which they get 28.3 percent from. They are also the fastest growing investment bank since the last 2 years. They are most of their revenue from fees and commission while their peers don’t earn so much from fees and commissions. Dam capital also has the highest profit margins among the peers which were ICICI securities, IIFL securities, JM financials and Motilal Oswal. They have the highest employee costs as a percentage of their revenue at 35 percent despite having the least employees. They also have the highest return on equity. Their revenue per employee is also the highest. They have the least amount of stocks covered. They are one of the leading investment banks in India with a marker share of 12.1 percent based on the amount of initial public offerings and qualified institutional placements undertaken by DAM as the book running lead manager in Fiscal 2024. They provide a wide range of financial solutions in the areas of investment banking which includes equity capital markets (ECM), mergers and acquisitions (M&A) and private equity (PE) and structured finance advisory. They also provide solutions in institutional equities comprising broking and research. They focus on the Indian capital markets with a variety of different clients. Through their wholly owned subsidiary DAM USA they can expand their Indian business into USA. They have executed a lot of IPO and QIP successfully. Key aspects of their institutional equities platform are research, sales and sales trading. One of their skills is building relationships between investors and corporates. For investment banking they are looking to expand products, client base and average transaction values. For institutional equities they will continue to focus on advising clients and penetrate deeper with heir existing clients and grow their market share. They want to continue to grow their ECM business by adding new clients and focus on companies operating in the new sectors like technology, artificial intelligence, clean energy, data centres and semiconductors. To enhance their research they have been adding new sectors and increasing the number of companies under coverage. This will allow them to provide more diverse and relevant insights to their clients. For sales their strategy is to just expand their business. To upgrade their sales trading they want to improve their technology. They are trying to venture into retail broking and asset management business. They want to try to tie up with a global investment bank to expand their business.