SATIN CREDITCARE NETWORK LTD :

http://www.satincreditcare.com/index.php

Satin Creditcare Network Limited (SCNL) was formed in 1990 as a Non-Banking Finance Company (NBFC) with the simple concept of providing individual loans to urban shopkeepers for tiny businesses by Mr. Harvinder Pal Singh. Since then the company has expanded and evolved into one of the leading microfinance institutions in India with its current geography in North as well as Central India.

SCNL provides loans to both urban poor and rural poor to meet their productive requirements in starting new business or for growing an existing business. The company’s microfinance operation is based on both Joint Liability Group(JLG) model as well Self Help Group model (SHG).

At present, SCNL has its strong presence and serves its clients throughout Bihar, Chandigarh, Delhi, Haryana, Jammu , Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh and Uttrakhand . In addition to the above SCNL is also listed on Delhi, Jaipur, Ludhiana, Culcutta and National stock exchange recently.

It is backed by very strong financial institutions. Partners - http://www.satincreditcare.com/our-partner.php

Particulars 2011 2012 2013 2014 2015
Total Revenue (Cr.) 58.62 56.23 94 191 324
PAT (Cr.) 2.17 1.4 4 15.5 31.7
Total Assets (Cr.) 294 316 745 1115 2010

Book value was around 66/- as on March 2015.

SCNL received CARE Ratings of MFI 1 (MFI One) grading - the top most category in MFIs grading.
As on March 31, 2014, the Gross NPA percentage was 0.02% while Net NPA percentage was Nil.

Previous CARE report - http://www.careratings.com/upload/CompanyFiles/RR/Satin%20Creditcare%20Network%20Limited-07-21-2014.pdf

June 2015 results - http://www.satincreditcare.com/pdf/Financial-Results-June-15.pdf

Latest shareholding pattern - http://www.satincreditcare.com/pdf/Shareholding-pattern-Jun-2015.pdf

Latest Annual report - http://www.satincreditcare.com/pdf/Book-final-05.pdf

Many YouTube videos are also available - https://www.youtube.com/results?search_query=satin+creditcare

Positives:

India is a huge market for microfinance – it has more than 400 million poor seeking an opportunity to reduce their vulnerabilities, create assets and ensure income security. India’s microfinance sector is lauded as a savior of the poor and a good bet for investors.

According to industry reports, microfinance institutions (MFIs) would grow at an annual pace of 30%-35% over the next three years on the back of improved fund availability. MFIs have committed to opening at least 30 million bank accounts within a year through tie-ups with banks as part of the government’s ambitious financial inclusion plan recently announced.

More can be read at...
https://www.linkedin.com/pulse/microfinance-institutions-mfis-growing-breed-india-arup-das

Satin’s presence in underpenetrated north and central India micro finance market provides ample opportunity for sustainable future growth.

Good asset quality.

Points covered as above.

Negatives:

Satin (And even big brother SKS) was not given small bank license by RBI. If given, it would have helped satin to bring down borrowing cost, reduce political uncertainty and more lending flexibility. Anyways it is backed by strong muscles that liquidity won’t be any problem for Satin. Borrowing in last few months shows credentials.

More can be read at
http://www.business-standard.com/article/finance/becoming-a-bank-will-not-give-players-an-edge-in-micro-finance-space-s-dilli-raj-115093001195_1.html

http://www.livemint.com/Money/ltsH9yco3pH85mgKIrZaPM/SKS-Microfinance-Is-the-glass-half-full-or-half-empty.html

I am not aware about competitive advantage satin enjoys in North and Central India, but overall market is huge and many companies can coexist and grow.

This is my first attempt of starting a new thread. Views are invited.
Disclosure: Bought few share at 190/- and its 5% of my portfolio.

Ayushji it's not opening can u Pl Give crux of it....

1. Companies which operate in good industries. Good industries are the one which keeps growing at decent space. If underlying industries keep growing, it's very easy for good companies to maintain the growth momentum above industry average. (Many times, business momentum is more important than brilliance of the mgmt)

2. Huge Market Size: If market size is large it can accommodate number of players. Margin pressures are less. In large markets dominant companies can keep growing even after industry matures at the expense of weak companies.

3. Companies have track record of past performance; good RoE / RoCE. non cyclical. Moderate MCap.
   Possibly companies have triggers for Revenue , Margin, PE Expansion.

My portfolio is as below.
I am not overly worried on companies being expensive or portfolio being concentrated.

1. Repco - 25%
2. Granules - 25%
3. Page - 20%
4. PI Industries - 15%
5. Torrent Pharma - 15% ( new entry to portfolio)

Over a period of time want to add one more company at 10-12% of portfolio by reducing 5% from Granules (weight has gone up due to recent price appreciation) and couple of percentage from others.

Recent interview - http://economictimes.indiatimes.com/et-now/corporate/demand-for-housing-is-slightly-subdued-canfin/videoshow/49166985.cms

Sept proved to be yet another month of poor sales growth- just 4% Yoy growth in Sept.

1st half of this financial year saw just 6% growth.
http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/4C724C3B_1DEC_4B1E_927C_AD2AC7BA6E1C_122226.pdf

Management, on the other hand, remains confident of recovery in the 2nd half.
http://www.moneycontrol.com/news/business/sales10-mom-expect-better-h2fy15-results-atul-auto_3367341.html

While some Players like TVS are growing fast in 3W even in current markets, it would be interesting to see how Atul performs in 2nd half & next year!