When I first saw this nbfc diversification news I was surprised and little disappointed. when i read more about it, the reason and purpose behind it to make their own ecosystem better and self sufficient. The real moat of pidilite is the trust their partners and consumer have over their products and this nbfc seems to cater to the benefit of their partners which seem to strengthen that moat further…provided this channel is used judiciously and sensibly…now that seems to be a big if for me as and when this nbfc grows…considering i had decided long back not to invest single penny in any lending nbfc…
For now, i am just evaluating the situation and it seems they will go very slow and conservatively with this nbfc which is a positive factor for me…also giving benefit of doubt to a good management so far…
I would not call it a typical diversification because they have not entered this business as they want to derisk from main business and neither they intend to increase revenue and profits out of this…instead they eneterd thos for their main business.
others views welcome on this new business
Disc: Invested & biased with pidilite among top 3 holdings. Not a buy/sell recommendation. Post only for academic purposes and i can be wrong in all my assessments. Not eligible for any advice.
| Subscribe To Our Free Newsletter |
