Indiabulls

What is your view on the stocks of Indiabulls group - specifically Indiabulls securities. The dividend yield is very high and has also given pretty huge capital appreciation. However, it does not find coverage by analysts - wonder why.

 

You are right - may be the governance is an issue - but there is hardly anything in the public domain other than the Veritas issue where also they had to kind of retract. But I wonder how they generate such good operating and financial metrics - for instance IBulls Home Finance on some parameters may be India's best mortgage financier! But for the governance cloud perhaps the valuation would have been much higher.

 

I think confidence is not there in India bulls group. There is no smoke without fire. Better safe than sorry. Also in a market crash such stocks will lose most while stocks like gruh repco will stay strong. Also slight rumor or news can send stock tumbling. So I think we have to be very careful about such stocks. In the greed for fast money we should not risk the capital.