@Mohit_baid but I don’t think Megatherm is going be a strong beneficiary of steel capex, most players are going to build capacities using BOF route rather than EAFs because there isn’t much steel scrap available. Also as I said, the market for induction furnace itself is very small so room for growth is very little.

Disclosure – I’m invested already but was looking to significantly increase position size and researching before doing that.

They’ve been working on the retailization of their deposit base as a key imperative for a while now. Its gone from ~13k Cr of retail CASATD in 2019 to 1.5L Cr in 2024. Wholesale deposits have moved from 27k Cr to 42k Cr in the same period so the nature of their deposit base has completely changed. Can’t comment on how these are split by balance buckets as banks don’t give that info out.

They’ve been garnering deposit market share despite the war that’s out there so clearly doing something right there. While it started as an interest rate play, it’s no longer the primary driver I think especially since they cut the rate to 3% in the <1L bucket. Mgmt says they didn’t see outflows despite the drop. Over a certain balance threshold (different for different people), you start competing with FD rates anyway so if you can pull SA balance at 6% that’d have otherwise gone into a FD in some other bank, it’s a win anyway. The true granular SA (<1L) is at 3% for them so no rate play there.

As far as salary accounts go, it’s about quality of these A/Cs more than the quantity and HDFC is in a league of it’s own there. Number of other banks manage to get these A/Cs but getting the desired balance there is difficult. If you fail there, these A/Cs barely remain profitable on a cost to service POV, let alone result in good CLTV. So yeah, they have a fight there but it’s the same for most banks. Getting good salary accounts is tough.

On the NPA front, their NPAs are good and VV has been very vocal about keeping them that way. I remember him mentioning their NPAs even on the unsecured book is low but don’t recall if he mentioned a number. Future’s uncertain but VV has delivered on the promises so far and given the confidence with which he mentions keeping NPAs in check, I’m willing to go with him unless proven otherwise. He’s the main reason I invested in the stock anyway once they demonstrated they’d turned a corner.

Disc – I’ve tracked IDFC for a while now and took a position at around the 45-50 mark so I may be biased. I’m strongly considering adding to the position so there’s that as well.

Company is trying to make it life style or daily use item but still its not. As of now, its jewellary first, fashion later. So seasonality would remain till the item become truly “fashion” item which I guess is few years down the line…

The market values it based on book value because it’s a financial stock. However, I lean towards valuing it based on price-to-earnings ratio because as earnings rise, the price-to-earning ratio will decline more but book value won’t increase proportionally.
Manappuram stands out in this regard.
But that’s my theory
Can’t have less than 10 PE