As we can see in the above graph (from Crisil research), AU and Capital have completely moved away from unsecured Microfinance lending. Equitas has reduced the exposure to MFI to 19%. This will make their business robust as most of their lending is secured.
I prefer investing in good quality/high growth small caps so i prefer Equitas over AU SFB. Plus, the leadership at Equitas is also good.
As Sudhanshu said, it should be a long term story. So dips in price can be treated as opportunities. Contrarian thoughts are welcome.
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