Co promoters HP Singh is a CA & his brother Satvinder Singh is a MBA from IMT ,.They are coming from a service class background & enjoy good reputation in NCR where the co is headquartered.
As such HP Singh is a first gen entrepreneur with growth mindset.The type of growth they have shown is superb over last 4 years with EPS increasing from 0.78 in fy 11 to 12 in fy 15.This year EPS may touch 20 as last qtrly EPS was 4.5 & there is good infusion of funds by PE players.
Co had come with IPO in 1996 & got listed at DSE.It transformed into MFI in 2008 & sinc ethen has been on strong growth path.It got recently listed at NSE only.
Almost 50% equity is with quality PE players like Currently, it has 5 foreign investors – ShoreCap, Danish Microfinance Partners K/S, Microvest, Norweign Microfinance Initiative Fund and SBI FMO Emerging Asia Financial Sector Fund Pte Ltd – who jointly hold 48.98 per cent stake in the company.This is a big comforting factors as these instt are specialized MFI investors who wud have invested only after doing their home work.
The first investor Lok Capital has already got a successful exit in 2013.
With 35% stake with promoters issue is of liquidity.Some shares are still in physical form.
But bank was unsuccessful in getting a small bank license alongwith SKS micro while 8 MFIs have got the license.
Overall the co qualifies my checklist of good promoters,good opp size & return ratios.
Discl- recently invested @223
| Subscribe To Our Free Newsletter |
