This stock has quite a bit of margin of safety both from a price and quality of business perspective. It is one of 40 companies in the world which have been profitable for over 100 years. Nick Sleep, the famed value investor, always wanted to invest in organisations which have demonstrated this longevity e.g. London Stock Exchange, and has a theis around this. Orgs viz. CUB have deep, innate knowledge of customers, markets, cycles etc which they use the old school way of running business these can never be replaced by Large Language models (AI) etc. Aditya Puri was an old master of doing banking the old way and compounded business at the rate of 18-20%. CUB in my assesment has been very forthright about the RBI observations and change of RBI position regards interpretations of their circulars. This rising tide should be used by banks to clean up their books and confirm to guidelines – will hold good during a rainy day.
Discl: Invested
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