I think the writing is on the wall.
Gold loan biz is fully matured and is likely to stagnate.
MFI is the growth engine with VF, HF, MSME trailing it.
All listed MFIs trade between 1.5x PB – 4x PB (Spandana, Fusion, CAG)
Asirvad MFI has AUM of 10,000 crs with ROA of 4%, ROE 20%+ and decent NPA ratios
Yet as a whole available at 1x PB due to gold loan biz drag and recent ED issue.
Management has a very good opportunity to IPO/Demerge Asirvad given Asirvad is sitting at 5x Leverage and has to raise equity capital anyhow.
All MFI stocks have been on a roll the past 1 year and paper will be absorbed quite easily (contingent on ED matter being quashed)
Beneficial to all stakeholders involved due to value unlocking and every entity being judged on its own merit.
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