While we are at this discussion, Gruh is slowly inching up for a break out, a convincing breakout above 267 thereabouts should see 300 in no time as per charts. As I have been maintaining, Gruh will command premium valuations until its business characteristics change and I see no reason for them to change for a long time, but we should be cognisant of this in future. 50 bps Repo cut should help housing finance companies lower their average cost of funds and more so for Repco as its average cost of borrowing is higher than Gruh by about 50 basis points. Disclosure: Invested in both.
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