I am invested and hence my view could be biased.
However, I feel the company had to go thru this pain as they transitioned their business model from real estate wholesale focused NBFC…there have been surprises on provisions for sure…but I hope there are now done. Going forward, results should look fine. They dont have too much leverage, and they will definitely do some acquisitions, they have room to do that…they will monetize investments in Shriram group…also that land bank in Andheri…they have not been sharing details on that one, but as and when they start development of that, they will start to see the benefits of it accruing. As an investor, I need to be patient in this counter and have mid to long term view. If I believe in the management, and I am aggressive, I could use this opportunity to add more. There are no integrity concerns with the management and promoter. However, the manner in which they have been doing provisions quarter after quarter did make me uncomfortable. But on the other side, their disbursements have been improving, their fixed cost borrowing versus floating rate lending is good in the current scenario. On the expenses side, their operating expenses are increasing and they will continue for some time I feel, so this could keep the profitability under pressure…net net, I like to believe there is scope to make some money in this stock (dont think this is a multibagger), but patience is needed.
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