Posts in category All News
Digital payments in India to double to $7 tn by 2030 (14-07-2024)
Aavas Financiers :: Banking on the unbanked (14-07-2024)
In the latest Credit rating by ICRA, they mentioned the following
Going forward, the NIMs are likely to be under some pressure on account of the higher gearing.
Can someone please explain why NIMs is related to gearing?
From my understanding, gearing is the debt that the company can take, which implies that they can take more debt (according to the statement), which means that either the ROA reduces or they can give out more loans as they’ve more leverage.
How does NIMs come into the picture? Is it because of the ROI at which the new gearing have been given to the company?
Thanks
REPCO home finance (14-07-2024)
This does look like it is trading cheaply at 0.9 * Book value but some of the key monitorables and triggers to track could be:
Growth guidance - They missed the guidance of Rs 14,000-crore loan book by FY24. Management expects AUM to reach Rs 20,000 crore by FY27. So they need atleast a CAGR of 14-15% over the next three years.
Expansion - New branch addition in Tier 2 and 3 towns of Tamil Nadu as planned and also expand its presence in non-core states.
NIMS - NIMs improved to 5.2 percent in FY24 despite the higher cost of funds. Maintain this pricing power
NPAs - Asset quality must continue to improve (especially non-salaried segment). On the right track since FY22 but needs to keep it that way.
Credit Cost - Keep the incremental credit cost low in FY25 to boost earnings
ROA - Maintain atleast its current ROA of 3%
Policy impact - Govt’s rural focus, potential higher allocation under the PMAY-Gramin scheme (Pradhan Mantri Aawas Yojna) and impending rate cuts - will all be positive triggers
Arvind Kejriwal’s health condition ‘worrying’: AAP (14-07-2024)
Azad Engineering – A stock picker’s dream! (14-07-2024)
seems to be a wonderful business but in terms of valuations and some numbers situation doesn’t seem to be very good right now.
Equity dominates FPI investments in July, exceeding debt by 3.6x (14-07-2024)
Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value (14-07-2024)
Both businesses are different. One is B2B lender (MSME) and 2nd one is a retail lender.