Hi
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I think the cost of capital here is high as the pedigree, loan book quality and brand comes into play. Plz correct me if that’s not the case.
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Also India bulls lending profile is risky as it lends at quite higher rates ( since the coc is so high). So the asset quality should always be on a watch and I assume that here npa would always be elevated as compared to similar business.
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Now this story can be broken in two parts. First will culminate with the change of name soon and second will start when reliable growth numbers with decent asset quality will start pouring in. Going back to BV will depend on the second part imo. Let’s wait and watch and also hope the sticky inflation doesn’t make cost of borrowing go higher and difficult for the nbfc group.
Best
Divyansh
Disc : invested
Made multiple entry/exits so cost of holding is lower
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