Good morning friends,

Few points from my side
- Bond between MFI and borrower is stronger than what you and I have with SBI or ICICI. Especially women are very loyal customers.

• MFI usually lend in phases, say first 15000, then 30000 to 50000 to the same customer/group. So there is growth even from old Customers.

• Any MFI which is converted to small bank will have some cost and adjustment time. Not all can survive the change.

• Won't these small banks give priority and shift to larger sum of lending?

Few more interesting links

http://swaminomics.org/don’t-cap-microfinance-lending-rates/

http://thinkninkwithsaurabhsinha.blogspot.in/2013/06/microfinance-analysis-on-how-ap-govt.html?m=1

Every industry has its pros and cons.

I am not expert in financial sector so views from experts are always welcomed.

Caution there. there are some 15 similar sized companies in the same vicinity of 30KM radius, famously the Raasi Cements which was forcefully took over by N Srinivasan of India Cements and Ex BCCI president in 90's. The area is rich in lime stone on both either side banks of Krishna river which falls into both states, Deccan I suppose is on Telangana Side and India Cements also on Telangana Side, then there is penna, duncan, KCP etc etc ... Mostly all political big pins own a medium size cement plant in AP & TG. I am not sure of the dynamics of market but usually most politicos are also big contractors here, so usually the cement plants are for kind of captive consumption ... Some one should through a light on corhporjate governance and pollution issues beand union issues ... Historically its a naxalite effected areas but nothing dangerous happening now but still I guess AITUC is having a strong union in these areas.

@Mahesh

Thanks a lot for your brilliant analysis as usual

My only worry is the amount of time the management is taking to deploy the QIP proceeds and with no news whatsoever about it (the upcoming Q2 results and concall could throw some light).. The waiting time is too much and i must say that this is truly testing one's patientce

On a personal note I had missed out on opportunities like Jubilant Lifesciences, Kitex and 8k miles but i believe that this is one stock that should be part of one's long term portfolio regardless of the short term vagaries.

Regards
Sreekanth

@Vivek_6954

Vivek

I see that you have good exposure towards MFIs.. Whats ur views on competition esp that RBI has given licences to new payment banks + Mudra scheme launched by GOI? wouldn't it hurt the business of these companies?

Regards
Sreekanth

I am hoping USFDA approval news after necessary corrections will bring in the next jump in the stock price. May be thats already priced in the current price. @ayushmit, what do you think as good buying price range for Shilpa for the newcomers ? Every time it goes below 900, i see some buying interest. And once in a while it is touching ~830 range in the past one year. Not sure if one should wait for such lows again.