Let see how they report their gnpa and npa this quarter.Credit access grameen management has very well handled the covid and demonetization. Large promoter holding with only 10 % retail holding gives me a confident.
No 4+ lender in case of arman things that I need to check.
Low promoter holding is restricting me towards Arman. How is your perception regarding the same.
Will love to hear your opinion sir.
Only insiders know if it’s good for “NOW”. I am no god or insider. I am simply looking for more information about things turning around for this company.
One recent revival optionality can be Trump focussing on infrastructure and oil (as specified in his manifesto). This can be a good news for their SDA division. I am awaiting management commentary on this in their next concall.
Thinking probabilities. nothing else. Only the future will tell if it was “Wrong” or it was “Too early” or “Too late”
I have accumulated lots of Pharmeasy in the hope of a turn-around.
Creditacess gramin has customers having loans from 4 plus lenders at 12 % of the book as of Q2 concall. GNPA NNPA as of Q2 is 2.4 & 1.4 leverage is 2.74
Now coming to Arman it has 1.8 times leverage. as of Q1 nil customers who have taken loans from 4+ institutions. Gnpa nnpa 2.7 & 0.18 as of Q1. 4% of the loan book as provisioned.
So from this comparison Arman seems much better than creditacess. I like Muthoot Microfinance after Arman due to valuation & gnpa nnpa Compared to creditacess. They have published Q2 numbers.
Once Arman posts Q2 numbers we can have better picture.
Both Muthoot and CA mgmt saying by Q3&Q4 things should improve. Arman too in Q1 concall said same. Now need to wait for their result and concall.
This was the exact question I was about to ask…what makes you feel NPS tier 2 is better than liquid/debt funds…is it the lower expense ratio? I think for liquid/debt funds, expense ratio is anyways very low? (Pls correct me if wrong). Also, for debt funds, the ratio is generally 70:30 (debt to equity) unlike 50:50 that you mentioned for NPS tier 2. Is that giving them slightly better returns than liquid/debt fund? I think taxation must be similar for both? Thanks
Great read. Its an eye opening post. I think the present government should realise this and take corrective steps. The pace of infrastructure growth in India is way too slow. You can’t take one freaking decade to complete a metro rail project in a big city which is of utmost importance. State governments will change but the Centre has to realise this and speed up infrastructure projects.
I feel the biggest disappointment of the current government is being unable to tackle corruption and babudom in this country. If not addressed it will have serious consequences.
Thank you for penning these. I do agree with these.
Btw, the best TL;DR I have heard about India thus far is Ruchir Sharma’s (at least i heard it from him first) ==> “India disappoints both its optimists and pessimists”.
One of the ways in which the broader “Nothing is as good or bad as it seems” manifests itself.
Thanks for sharing your thoughts! I will definitely think about it.
For me, NPS Tier II acts like a fixed instrument ( I know it’s not fixed!). My point is, if I feel the markets are heated up, time to book some profits but don’t see any opportunity to buy anything I will simply put it in NPS Tier II. Benefits are that you can withdraw it easily, it’s relatively safer (50%E 50%D) and LEAST expense ratio. My expectations from this asset is just 10% (beating actual inflation).
For the current market, I am expecting a further 15-20% correction in small and micro caps. When I don’t know. If it happens, I will certainly deploy back the amount from this NPS account back to stocks.
I believe it’s better than liquid fund.
Only reason being, that the precious metals are having a rally and I found Senco as a good proxy and relatively cheap . I did some homework and took a small position.
However, the stock gave me more than expected returns in a very short span and I finally sold it.