Another great set of numbers by Five-Star business finance. Should be a 1,000 cr + ttm PAT & 13,000 cr AUM company in a few quarters.

Good control on credit costs. Will have to monitor this as the book seasons. The 1 & 2 year lag GNPA are 2% & 2.62% respectively (with the new IRAC norms so optically slightly higher) Need to see these numbers trending lower going forward.

The optical drop in NIMs are more a function of increased leverage than anything else.

Disc: Invested, biased.

Dec’23 results announced.
Sales down 20% YoY. Net Profit down 13% YoY.

Thanks a lot brother, even though the promoters were coming out in open and declaring that we have nothing to hide and are in talks with nestle and shareholders can visit the plant and blah blah blah. I really felt something was off so avoided giving 20 p/e, although stock has done well but still i don’t think it deserves anything above 10 p/e. I myself did a little bit of scuttlebutt and found that whatever the management might claim but wholesalers are avoiding this because of inconsistent product quality. I don’t know how it might pan out but all i know is i am not giving this company anything above 10 p/e. As far as QSRs are concerned consistency is important, so that whole dream of selling to anyone and everyone falls apart, and further about flexible packaging, i think huhtamaki is doing fantastic job, cracking nestle code won’t be easy. Other than that you can expand capacities as much as you want, no one is stopping you.

How do you get to take the position in continuous uc after the great quarterly result. I also want to invest but not getting chance to enter due to uc.