You must be averaging truckloads of Polyplex now I guess?

May be they werent able to convey it better. I think what they meant was because of system change the billables will be moved to next quarter.

Neways in next 2 Quarter things will become clearer .

Invested since 2 years

Do they deserve a premium valuation? Well, we will have to see. My bet is that the bigger names (like Kotak and HDFC) certainly deserve a higher valuation.

The underwriting skills for other public banks/smaller banks still need to be tested (I don’t believe that AL/ML skills) have helped them underwrite better. Once the environment turns, they are going to see higher slippages, npas.

Once the NPAs start coming up in the next 3-5 years (higher loan rates, recessionary environment), we will see all of this play out.
Remember Warren Buffet’s quote, “Only when the tide goes out do you discover who’s been swimming naked.” And once that happens, we will see them gain market share swiftly.

My money is on HDFC, Kotak, etc. For me, they are now trading at a reasonable valuation of 3 – 3.5 BV. If they can grow advances at 15%+ over 5 years, they certainly deserve this. The NIM’s surely would contract but not by much, and the repo rates are going to be sticky for a while which is certainly better for banks.

Disclosure – Invested.

There are 2 new opportunities which are not unfolded yet. First is semiconductor and 2nd is DDaS.

There can be possible hiccups because of implementation of a new tool/ migration from an old tool for example Order processing, inventory management, CRM, Pricing and quotes, lead management etc need to be integrated properly for the company to function smoothly, issues with any of these can hamper the production and sales.

The growth was based on the assumption that Covid is the last bad thing that is going to happen in the foreseeable future , which wasn’t the case because of Russia Ukraine war. Now, Carysil USP was Quartz sink, the major market for which was Europe and America. Now that they are fighting recession and the housing market is on a slump, the projections got trimmed and they also introduced a different business line to focus more on the domestic market instead. So, I believe things will remain slow as long as the world economy doesn’t recover, which by the looks of it is here to stay for a long time.

At least this is what my take on Carysil is so far. It might very well be the case that they are underperforming because of lack of competence and has nothing to do with all the reasons I mentioned.