Satin Creditcare - 10 times in 3 years.

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by bullinindia, Dec 11, 2015.

  1. bullinindia

    bullinindia New Member

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    The stock looks like a mega multibagger in the making. Cheap valuations compared to SKS micro.

    there is a very informative post in value picker forum on Indian micro finance. can esteemed boarders tell their opinion as well?
     
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Very good write up at valuepickr forum as usual. I am worried about micro finance business after AP fiasco and SKS loss. The Religare report is also very gloomy about prospects of sector.

    I think better to avoid risk and go for other NBFC without political risk. Why don't you look at Capital First which is doing very well. I have research reports if you want to see. It may be next Bajaj Finance.

    If you want to stick to microfinance is it better to stick to leader which is SKS. Even SKS has great upside as per Rahul Arora Nirmal bang:

    "SKS Microfinance has given such a beautiful correction though it is off its 52-week lows. It has seen a bit of a rally and there has been better newsflows surrounded by it. I still think SKS Microfinance would give you about 40-50 percent if you have one-year horizon from here"

    Read more at: http://www.moneycontrol.com/news/st...hul-arora_4380701.html?utm_source=ref_article
     
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  3. Parin Gala

    Parin Gala A long term investor

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    Yes CAPF is an excellent pick at the current levels. I have the same feeling for the stock. It can make it very big in the next 5 years. Its my personal top pick from the finance sector. People looking for an exposure in NBFC space should consider CAPF. Who needs Porinju and Dolly when we have our master stock picker Mukherjee sir here:);)
     
  4. Rajesh

    Rajesh Member

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    Bullindia,
    It would have been better if if you had given some logic behind Satin's good prospects instead of sweeping comments like '10 begger in three years', 'Half valuation than SKS'.
     
  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Agreed. valuepicker forum posts are packed with good info. They insist on risk factors being there.

    I think first decision to be taken is whether to be in MFI sector after all its risks of politics, poor people as customers etc etc. This decision to be taken in view of fact that other NBFC sectors are equally attractive with big size of growth possible E.g. consumer loans via Bajaj Finance/ Capital First/ SCUF, Transport loans via Sundaram Transport, Shriram, Housing loans via Repco, DHFL etc.

    When so many risk free (political/ regulatory) investments are there, why take risk of Micro Finance as explained by Religare in their detailed report?

    The second issue is regarding whether if to be in MFI, it has to be in SKS or Satin. SKS is known company with number of analyst coverage. Rahul Arora of Nirmal Bang has said stock has 40-50% upside in one year. Satin is unknown (relatively) so far. So, gain, if known stock has chance of 40-50% why take chance with unknown.

    Scope of opportunity is same for both because even SKS despite several years of ops is still small cap with mcap of 5600 crore only.
     
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  6. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Sir you are pulling leg it seems :D
     
  7. New_Investor

    New_Investor Active Member

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    No. He is right. Some of your posts are intelligently written, informative and inspiring. Some of your posts are pessimistic. Please try to have balance. Scams are part of the game. Political and Corporate scams have occurred in the past and will occur in the future also. We have to live with it. It is not that such a condition is existing in India alone. Political and Corporate scams have been occurring in other countries (including developed countries) also.
     
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  8. Parin Gala

    Parin Gala A long term investor

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    No. I mean it. Your stock picks are very good.
     
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  9. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    CAPF is shooting up :) Vidhi is also shooting up :)
     
  10. Rajesh

    Rajesh Member

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  11. kharb

    kharb Well-Known Member

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    Microfinance is a very good space ,but Indian Politics and Microfinance make a deadly cocktail.Indian politicians and their unresponible act in name of poverty also make deadly cocktail.I have full faith in Microfinance and poor . I can believe every thing but Indian politics more over cocktail never suits me.Good space but will leave it to bold friends .
     
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  12. Biju

    Biju Member

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    As the discussion is on NBFC Cos. what is your view on PNB Gilts
    The below given info is from Screener.in
    Market Cap.:₹ 467.13 Cr.
    Current Price:₹ 25.95
    Book Value:₹ 41.25
    Stock P/E:6.39
    Dividend Yield:5.78%
    Face Value:₹ 10.00

    52 Week High/Low: ₹ 36.00 / ₹24.50
    EPS: ₹ 4.06
    Debt: ₹ 3,857.91 Cr.
    Debt to equity: 5.35
    Interest Coverage Ratio: 1.41
     
  13. New_Investor

    New_Investor Active Member

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    Don't remain under the impression that RBI would try to reduce political interference. Although RBI is a autonomous body they have their limitations. What did RBI do when SK Microfinance was facing problems due to politicians in Andhra?
     
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  14. kharb

    kharb Well-Known Member

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    Very good point, rather Politicians are trying to curtail powers of RBI and want direct control over it.No doubt RBI and its governer are doing their job very well but Good Job is never liked by politicians.
     
  15. New_Investor

    New_Investor Active Member

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    One day spikes are dangerous. If any share price goes up in vertical direction speedily in one or two days, it can also come down in downward direction speedily in one day. If it suddenly crashes, you may not get a chance to get out. RMSC Sir, Am I right? Your comments please.
     
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  16. rushia

    rushia Member

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    prakash diwan has recommended it as a small cap buy on cnbc tv18. His thesis is that they have little competition in the north, where sks and others are not very active.
     
  17. w4wealth

    w4wealth Well-Known Member

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    good long term bet. great potential.
     
  18. New_Investor

    New_Investor Active Member

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    Why Equitas valuation better than existing NBFC's?

    Read more at: http://economictimes.indiatimes.com/articleshow/51926854.cms
     
  19. bholu

    bholu Active Member

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    Microfinance Institutions only exploit poor in the name of providing small loans. You can read this article. Read this report here and see the heart wrenching tales of how the poor were shamed and humiliated so much that they had to commit suicide. I would not invest in MFI companies even if they were ONLY companies available for investing in stock markets. I may have no technical knowledge of banking sector like Darth but I do have a conscience.

    http://www.wsj.com/articles/SB10001424052970203918304577242602296683134
     
    Last edited: Apr 24, 2016
  20. New_Investor

    New_Investor Active Member

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    SKS Microfinance: The inside story
    Bholuji, you have referred to a article printed by Wall Street Journal, a foreign newspaper.

    SKS Microfinance: The inside story

    http://www.livemint.com/Industry/hvWN2IbllrX5hXKj3keERL/SKS-Microfinance-The-inside-story.html

    Microfinance: To hell and back
    In a nation where half the population isn’t served by formal banking system, microfinance industry acquired a halo in the early part of last decade. And then, Andhra Pradesh crisis happened

    http://www.livemint.com/Opinion/Z3YLSgcdQxb4VygrbRW6EL/Microfinance-To-hell-and-back.html

    https://governancexborders.com/2013...used-the-indian-microfinance-crash/#more-3363

    Note: I donot have any investment in SKS Microfinance. Nor am I a supporter/ well wisher of SKS.
     
    Last edited: Apr 24, 2016
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