AUM is constant at around 60K Cr. There is an increase in retail assets by approx 11K cr YoY and a similar amount of decrease in Wholesale book and hence no growth in assets is seen. Few points to be noted
- Wholesale book yield is around 10.3% while Retail book yield is around 14.5%. With mix changing their yields should increase but seems like its very near to peak now
- Retail asset growth is approx 50% YOY with sequential growth in Q4 at 25% which is quite encouraging
- Opex Cost is approx 3.7% of AUM because of manpower and branch expansion. Last year it was 2% which has removed approx 1KCr from PBT
- Interest cost is approx 8.6% with 59% liabilities at fixed interest rates
- GNPA in retail portfolio need to be watched out for. Currently, they have provisions of just 600Cr on the retail book of 31Kcr. These need to be assessed in the coming quarters in terms of tenure and quality of assets.
At approx 15% YOY asset growth, opex cost of 3.5% of AUM and GNPA in line with Q4FY23, stock is trading at forward PE of 13 for FY24.
While stock appears a very good bargain in book value terms things that need to be watched out for are
a) Asset growth & quality
b) Deployment of surplus liquidity
Disclosure: Invested for more than 5 years
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