How big is the size of oppurtunity? This is equally important. We have a mortgage to GDP ratio of abt 10%. Sometime back I read the scope is huge ie untill Ranbir Kapoor becomes dada. India has abt 6.5 l villages and abt 90% of them have a population of 2000 or less. I think the pie is big and with a sustainable long term GDP growth of 7%, it will only get bigger. Besides, both Gruh and Repco lend to salaried and non salaried low ticket clients. That for me is the moat. Not easily replicable. Specially the non salaried class.
Discl: Invested in Gruh and Repco
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