Equitas SFB:-
Post the fall- the trend has finally reverse and volumes are building. Testing the trend line resistance.
Fundamental thesis:
Credit cost will fall in H2 this year going by the stated guide and write backs can start from Q3 onwards. Given they run the CV business High PCR, taken write backs when the used CV gets sold. Could be used to beef up PCR. Lets see.
BVPS post merger will be at Rs41- not factored in any street estimates at the moment.
Guidance to grow AUM is at 25%+, H2 is seasonally stronger.
Only joker in the pack is to watch the asset quality like a Hawk. GNPA’s have started falling though.
Disc: own Equitas hold co, but track SFB as reverse merger can be completed at any time, given rbi & nclt approval is here. A case study for me as I bought the Hold co at 110 first and then averaged down in 80s and 90s. Given the value that emerged.
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