I wanted to make this point but,
the RoE will come down only in the short term as the funds lie un-utilised and as the business can generate high RoE, Gruh will lend more money with the increased equity base (remember, for finance companies leverage is allowed so GRUH can probably lend 10 times, not sure what’s the current leverage of Gruh) and over 3 years or so RoE will go back to previous levels and market knows this so the PE will NOT drop to proportionate levels.
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