It means the same company was available at 0.65 pb ratio after deducting all the npas and liabilities from the Advances given. So it was a very conservative pb ratio i calculated not something that what the conventional book value (the equity portion). Now the conventional pb ratio is around 1.6 (as of today). So surely it’s not so cheap. Considering 70% of the book is wholesale lending (earlier used to be 100%). But still it can go to PB ratio of 2 since that was historical high valuation. When I bought it, it was a cigarbutt investment, w/o having any focus on growth. Now growth also matters. So clearly valuation is hazy compared to earlier. When valuation becomes hazy probability of making money reduces. Take any popular stock for example. Surely u can get some 20-30% return but it won’t sustain over 3-4 years
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