BOFA Securities initiates Neutral coverage on Meesho with a ₹190 target, highlighting strong mass-market growth potential, improving EBITDA trajectory, and valuation reflecting medium-term execution risks.

Why Is BOFA Neutral on Meesho Despite Strong Mass-Market Growth Potential?

The Neutral stance does not negate Meesho’s strategic relevance. Instead, it underscores that the stock is transitioning from a pure growth narrative to one where operating leverage, margin discipline, and capital efficiency will increasingly determine investor outcomes.

BOFA’s projections place Meesho among the faster-growing consumer internet platforms in India. A 26 percent NMV CAGR over FY26–29E implies sustained momentum in order volumes and user expansion. However, the brokerage is careful to highlight that growth alone is no longer sufficient to justify aggressive rerating in platform businesses.

This is a theme increasingly visible across global markets. As platforms mature, investors demand a credible pathway to profitability rather than indefinite scale-building. Meesho’s improving EBITDA trajectory is therefore central to BOFA’s framework.

In volatile market phases, separating structural growth from valuation risk becomes critical. This discipline mirrors how experienced participants rely on structured signals such as a calibrated Nifty Tip to avoid extrapolating optimism too far ahead of fundamentals.

The transition from negative to positive EBITDA is not trivial in a low-ticket, value-commerce model. It requires tight control over logistics costs, marketing efficiency, and seller incentives. BOFA’s estimates suggest that Meesho is gradually achieving this balance as scale improves and unit economics stabilize.

The strength of Meesho’s model lies in market creation rather than market capture. By enabling commerce in geographies and income segments previously underserved, the platform expands the total addressable market. However, this also means average order values remain modest, keeping margin headroom limited.

BOFA also highlights optionality beyond the core marketplace. Fintech offerings can enhance user stickiness and improve take rates, while grocery expansion offers frequency-driven growth. However, both initiatives come with execution risk and require careful capital allocation.

The valuation framework used by BOFA reflects this balance. By combining a DCF approach with a 30× FY29E EBITDA multiple, the brokerage signals confidence in long-term fundamentals while acknowledging that much of the upside is already embedded in current prices.

Investor Takeaway

Derivative Pro and Nifty Expert Gulshan Khera, CFP®, believes Meesho represents a structurally important player in India’s value e-commerce ecosystem, with credible growth and improving profitability. However, as valuations now reflect these strengths, future returns hinge on disciplined execution and margin delivery. Investors should balance optimism with valuation awareness, while accessing consistent market insight at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Why Is Germany Offering Visa-Free Transit to Indian Passport Holders Now?

In a significant diplomatic and mobility-related development, Germany has announced a visa-free airport transit facility for Indian passport holders. This move removes the long-standing requirement of obtaining a separate Airport Transit Visa (Schengen Category A) while transiting through German airports. Though it does not permit entry into Germany or the Schengen area, the decision materially eases international travel for Indian flyers and carries broader strategic implications.

Why Has Germany Allowed Visa-Free Transit for Indian Passport Holders, and What Does It Mean for Indian Travelers, Airlines, and Global Mobility?

What Exactly Has Germany Announced?

The announcement was made as part of a joint India–Germany statement issued on January 12, 2026, coinciding with the official visit of German Chancellor Friedrich Merz to India. The timing is symbolic, marking seventy-five years of diplomatic relations and twenty-five years of strategic partnership between the two nations.

Which Airports Are Covered Under This Facility?

It is important to note that this relaxation applies strictly to airside transit. Travelers are not permitted to exit the airport, clear immigration, or enter Germany or any other Schengen country under this facility.

Why This Decision Matters for Indian Travelers

Earlier, even a short layover in Germany required advance visa approval, often causing delays, missed connections, or rerouting through less efficient airports. This change brings Germany in line with other transit-friendly nations and significantly improves the overall travel experience for Indian citizens.

Strategic and Diplomatic Significance

Prime Minister Narendra Modi publicly expressed gratitude to Chancellor Merz for the move, highlighting its importance in strengthening people-to-people ties. Such steps often act as precursors to deeper cooperation in trade, education, technology, and skilled workforce mobility.

Impact on Airlines and Global Travel Routes

Over time, increased transit traffic may strengthen Germany’s position as a preferred aviation gateway for Indian outbound travel. This could also influence bilateral air service agreements and future capacity expansion.

Does This Mean Visa-Free Entry to Germany?

However, policy analysts often view such transit relaxations as incremental steps. Over the long term, they can pave the way for broader mobility discussions, including student visas, work permits, and professional exchanges.

What Indian Travelers Should Keep in Mind

As always, airline-specific and airport-specific operational rules should be checked before travel, especially during long layovers or overnight connections.

Investor Takeaway

Germany’s visa-free transit decision is more than a travel convenience. It reflects strengthening India–Europe relations, rising global confidence in Indian travelers, and a gradual easing of mobility barriers. Such developments often precede deeper economic, educational, and workforce integration, making them relevant not just for travelers but also for long-term investors tracking globalization trends.

— Gulshan Khera

Read free content at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services

Chasing recent market winners and exiting laggards too early often destroys long-term returns. Asset leadership rotates cyclically, making diversification and disciplined rebalancing essential for sustainable wealth creation.

Why Chasing Recent Market Winners Often Ends in Disappointment?

Retail investors often rely on trailing returns because they are easily available and heavily promoted. However, trailing returns capture what has already happened, not what is likely to happen next. By the time an asset tops performance charts, much of the upside may already be behind it.

Market cycles are influenced by macroeconomic variables such as interest rates, inflation, GDP growth, currency movements, and geopolitical developments. As these variables change, capital flows shift accordingly, reshuffling leadership across asset classes.

For example, years when equities dominate are often followed by phases where gold, debt, or global assets provide superior risk-adjusted returns. Similarly, small-cap and mid-cap stocks that shine in bull markets can underperform sharply during corrections or economic slowdowns.

This behaviour directly challenges the idea of permanently favouring any single asset class. It also exposes the flaw in performance-chasing strategies that rely on recent winners.

These shifts are not anomalies. They reflect how markets discount future expectations well in advance. By the time good news becomes widely visible, prices often already reflect optimism.

Conversely, assets underperforming due to temporary headwinds often trade at attractive valuations, setting the stage for future recovery. Investors who exit these assets prematurely lock in underperformance and miss subsequent rebounds.

Another behavioural trap is abandoning underperforming assets too early. Investors often lose patience just before cycles turn. This is especially visible in small-cap funds, thematic strategies, and even gold allocations, which investors exit after periods of consolidation.

Ironically, these are often the phases when disciplined accumulation through systematic investing works best. Volatility, while uncomfortable, is the ally of long-term investors when approached correctly.

A diversified portfolio across equities, debt, gold, and global assets smoothens return streams. Diversification is not about maximizing returns every year; it is about ensuring survival and consistency across cycles.

Rebalancing plays a crucial role in this process. By periodically trimming assets that have outperformed and reallocating to laggards, investors naturally follow a buy-low, sell-high discipline without attempting to time markets.

Most portfolios drift away from their intended allocation during strong market rallies. Regular reviews and rebalancing help restore balance and manage risk before volatility strikes.

Investor Takeaway

Derivative Pro and Nifty Expert Gulshan Khera, CFP®, believes the biggest enemy of long-term wealth creation is behavioural error, not market volatility. Avoid chasing recent winners and dumping laggards prematurely. A diversified portfolio with periodic rebalancing allows investors to benefit from inevitable leadership rotation while protecting capital across cycles. More disciplined market perspectives are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Avenue Supermarts sees sharply divergent broker views as CLSA upgrades conviction on margin-led earnings strength while Citi remains cautious on growth moderation, margin sustainability and rising quick-commerce pressure.

Why Are Broker Views on Avenue Supermarts Sharply Divided After Q3?

This divergence is not merely about one quarter’s numbers. It reflects two fundamentally different interpretations of what DMart’s margin expansion means in the context of slowing same-store growth, intensifying quick-commerce competition, and a maturing store network.

CLSA’s optimism is rooted in operating execution. The brokerage highlights that margin expansion was broad-based and meaningful, translating efficiently into EBITDA growth. While PAT lagged EBITDA marginally due to higher finance costs, CLSA treats this as a tactical issue linked to short-term bridge loans used to accelerate store additions rather than a structural weakness.

Importantly, CLSA has raised FY26–FY28 consolidated earnings estimates by 1%–7%, signaling confidence that DMart’s profit engine is entering a stronger phase. From this perspective, the company is demonstrating an ability to protect and even expand margins despite a tougher demand environment, a trait that few mass retailers globally manage consistently.

For momentum-oriented investors, such margin resilience often becomes a powerful narrative driver. This is why disciplined participants prefer to contextualize earnings surprises through structured lenses, similar to how a calibrated Nifty Tip framework filters signal from noise.

While CLSA views this as evidence of DMart’s operational superiority, Citi’s interpretation is materially different.

Citi’s core concern is not the quarter itself, but the quality and durability of growth. The brokerage highlights that same-store growth has decelerated sequentially from 7.1% in Q1 to 6.8% in Q2 and now 5.6%, pointing toward demand normalization at best and competitive pressure at worst.

Management commentary on deflation in staples adds another layer of complexity. While deflation supports gross margins temporarily, it can suppress topline momentum, creating an earnings mix that looks optically strong but may not be repeatable.

Citi also flags that in 10 of the last 12 quarters, profit growth has lagged revenue growth, suggesting underlying cost pressures and competitive intensity have not disappeared. The brokerage believes recent margin gains could be driven by one-time factors such as higher FMCG discounts linked to inventory liquidation following GST rate changes, or discount rationalization under new management to defend profitability.

The divergence between CLSA and Citi ultimately reflects a philosophical split. CLSA believes DMart’s model is strong enough to absorb competition and still compound earnings, while Citi questions whether the retail landscape has structurally changed in ways that cap long-term upside.

Investor Takeaway

Derivative Pro and Nifty Expert Gulshan Khera, CFP®, believes Avenue Supermarts is transitioning from a pure growth story to a margin-and-efficiency story. While recent execution has impressed, investors must track same-store growth and competitive dynamics closely. Divergent broker views reflect genuine uncertainty, making valuation discipline and time horizon alignment critical. Objective, fundamentals-driven perspective remains essential and is available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Crypto assets promise eye-catching returns, but their risks are structural, non-enforceable, and asymmetric, making them fundamentally different from equities, gold, or regulated financial instruments.

Why Crypto’s Risks Are Structural While Its Returns Are Not Guaranteed?

Many investors compare Bitcoin or other digital assets to equities like the Nifty 50 or global indices, focusing on historical returns. This comparison is deeply flawed. Equity returns are realised within a framework of legal ownership, regulatory protection, audited disclosures, and enforceable rights. Crypto operates outside this framework.

Early-stage crypto returns were driven by discovery, novelty, and rapid monetisation from obscurity to global awareness. That phase is largely behind us. As adoption increases, returns mathematically compress, but the risks do not reduce in tandem.

What often goes unnoticed is the behavioural reality of investing. Even if an asset delivers exceptional returns over a decade, very few investors actually capture those returns. Volatility, fear, greed, and timing errors erode realised outcomes.

In crypto, this problem is amplified. Extreme price swings, lack of valuation anchors, and narrative-driven trading make disciplined holding extraordinarily difficult. Comparing theoretical returns with real investor experience creates a dangerous gap.

As crypto markets mature, returns begin to resemble those of traditional assets. However, unlike equities or gold, crypto does not benefit from declining risk as it scales. The justification for holding it weakens as risk-adjusted returns normalise.

The most underappreciated risk in crypto is enforceability. Even if an investor is right on price direction, there is no guarantee of being able to realise gains. Exchange failures, hacking incidents, frozen withdrawals, or regulatory actions can render assets inaccessible.

High-profile exchange collapses and custody failures have shown that digital ownership does not always translate into practical control. Forgotten passwords, lost devices, or operational errors can permanently destroy wealth without recourse.

Another layer of risk arises from market structure. Crypto markets often resemble an unregulated environment where price discovery can be distorted by large holders, leverage, and opaque issuance mechanisms. Stablecoin dynamics and sudden liquidity events can overwhelm fundamentals.

Unlike equity markets, there is no robust delivery-versus-payment mechanism. This increases counterparty and fraud risk, particularly during periods of stress. Even profits, if realised, may face unfavourable tax treatment or sudden policy intervention.

These risks are not hypothetical. They are recurring features of the crypto ecosystem.

If crypto belongs anywhere in a portfolio, it is within discretionary capital—often described as “mad money.” This is capital that an investor can afford to lose entirely without impacting long-term financial security.

For investors planning for retirement, education, or long-term wealth preservation, assets with fragile enforceability and unpredictable risk profiles are unsuitable. The absence of downside protection combined with diminishing upside creates an unfavourable equation.

Importantly, this does not require crypto prices to collapse to zero. Even moderate long-term returns fail to justify permanent structural risks. As returns normalise, the risk-adjusted case weakens substantially.

Investor Takeaway

Derivative Pro and Nifty Expert Gulshan Khera, CFP®, believes investors must distinguish between volatility risk and structural risk. Crypto’s volatility may reduce over time, but its core vulnerabilities do not. Once returns normalise, the justification for exposure weakens sharply. Investors should anchor portfolios in enforceable, regulated assets and treat crypto, if at all, as high-risk discretionary capital, with broader market insights available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

NSE’s plan to launch trading in Electronic Gold Receipts marks a major step in India’s gold market formalisation, improving transparency, liquidity, and efficiency while accelerating the shift from physical to financial gold.

Why NSE’s Electronic Gold Receipts Can Transform India’s Gold Market?

India is one of the largest consumers of gold globally, yet a substantial portion of gold holdings remains in physical form. This has historically resulted in inefficiencies related to storage, purity assurance, liquidity, and taxation. EGRs aim to address these challenges by converting physical gold into a fungible, tradable financial asset without breaking the emotional and cultural bond Indians have with gold.

This structure ensures that each EGR is fully backed by physical gold, maintaining trust while unlocking liquidity. Unlike gold ETFs or digital gold products that rely on intermediaries, EGRs directly link ownership to stored physical gold, providing an added layer of comfort to traditional investors.

A key advantage of EGRs is efficiency. Holding gold in demat form eliminates concerns around storage, insurance, and purity disputes. Settlement and transfer become seamless, and price discovery improves through exchange-based trading.

Beyond investor convenience, EGRs have macroeconomic significance. Gold dematerialisation reduces the need for repeated physical handling and imports, improves traceability, and supports the formalisation of the gold economy. Over time, this can aid in reducing India’s current account pressure linked to gold imports.

However, the rollout has not been without challenges. One of the primary hurdles highlighted by NSE relates to taxation, particularly the Goods and Services Tax. Converting physical gold into EGRs and vice versa raises complex questions around GST applicability, valuation, and timing of tax incidence.

Discussions between exchanges, regulators, and tax authorities are aimed at ironing out these frictions. Progress on this front is critical for widespread adoption, especially among jewellers and large bullion participants.

NSE’s move must also be seen in the broader context of market development. Alongside EGRs, the exchange is actively working on new products across commodities, bonds, and derivatives to improve market depth and participation. The success of electricity futures and efforts to enhance bond market liquidity signal a broader push toward diversified, mature capital markets.

Gold, however, occupies a unique position. It is both an emotional asset and a financial hedge. Bringing it onto a regulated exchange platform bridges the gap between tradition and modern finance.

For investors, EGRs offer an alternative to gold ETFs and sovereign gold bonds. While ETFs provide market-linked exposure and SGBs offer interest income, EGRs allow direct ownership and physical convertibility, making them attractive to a different segment of investors.

From a trading and asset allocation standpoint, gold remains a critical hedge against inflation, currency depreciation, and geopolitical uncertainty. Structured participation in markets, similar to disciplined approaches followed through calibrated signals such as a Nifty Tip, becomes even more relevant as new instruments expand choice and complexity.

Over time, the success of EGRs will depend on ecosystem participation. Jewellers, bullion traders, banks, and retail investors must all find value in the system. Clarity on taxation and smooth operational processes will be key catalysts.

If implemented effectively, EGRs could become the backbone of India’s gold market, similar to how equities moved from physical certificates to demat accounts decades ago. That transition, once resisted, is now taken for granted.

Investor Takeaway

Derivative Pro and Nifty Expert Gulshan Khera, CFP®, believes NSE’s launch of Electronic Gold Receipts is a landmark step in modernising India’s gold ecosystem. By combining the trust of physical gold with the efficiency of financial markets, EGRs can unlock liquidity, transparency, and long-term value. Investors who understand this shift early stand to benefit from a more mature and efficient gold market, with continued insights available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.

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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.