Satin Creditcare Network Ltd – Reaching out!

Absolutely, this is where the opportunity lies in investing in Satin, in my opinion because of the below –

The above might be due to cost of funds being high for Satin (BBB+) when compared to SKS whose cost of funds is lowest among MFIs. I do not have much idea on Capital Trust and Arman, but I think they should not be compared yet

• because their AUMs are too small in comparison and more importantly,
• Capital Trust is not an MFI I think and Arman’s AUM has 50% of AUM and 50% of other loan book.

FY16 Net profit of Satin will almost double with about 50% increase in AUM because –

• H1 FY16 profit of Satin is almost equal to entire FY15 profits so we can expect a similar trend in H2 with H2 typically being better than H1.

RoE and RoA of Satin are around 19% and 1.6. Management expects RoE around 18%-20%.

Note: SKS I believe is not paying full taxes as it has accumulated losses during AP fiasco which are being offset, so the tax is around 20%.

Note: Since I have studied Satin, I’m putting my thoughts here only, please do not misconstrue this as my propagation, you must do your own diligence.