I disagree with your analysis of 10x in 10 Years. Hence, it is not a value trap today.

Past 10 years were very different for the gold loan companies. Their golden period of growth is in past now. I recommend reading few reports which were released 1-2 years back, they have explained in detail the phases this sector went through. Today, even opening of new branches is regulated and cant be done at a fast pace.

Technology has also improved which has made competition to enter the market much more easily than previous times. This business used to be heavily operational heavy and still it is but technology is making it little easier now.

We shouldn’t throw away the data which we get, this is one important thing we can learn from technical analysts. The data provides that Manappuram is losing market share, growth has slowed down, and on other hand NBFC like IIFL kept growing. Why? One has to figure these things out to understand whether such companies fit in their style of investing.

I don’t know whether it’s a value trap or not but past performance can’t be used to conclude it is not one.

You’ve pasted from Screener. Screener hasn’t captured standalone cash flow data. It’s available in the annual report. Cash flow from operations is Rs 134 crore, standalone basis. Wild allegations.

Hi, These are not recommendations by any means. We are just screening companies for further studies. One can go through their con call, look at their financials/technical and take decision accordingly. Also as I mentioned in one of the thread, these companies need to be tracked if they are walking the talk or not. They needs to be measured on basis of their quarterly performance and growth trigger.

I have learnt it(hard way) from Laurus lab guidance where management mentioned 1 billion revenue guidance for almost 3 quarters and never achieved that. So we would have to see if guidance is reflecting in the numbers or not.

Dear Divyansh

Thank your for your spontaneous takeup.
You have been given Stock Story rights. Please check if you are able to edit.
You are the lead/owner of EACL Stock story. I ma sure others will pitch in to help

@ayushmit @yogansh @aga.ayush11 @sahil_vi and any others wanting to help
please pitch in generously and help refine once Divyancsh create sthe base.
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