Marcellus has decreased their position size in aavas to 4 percent (??) from a higher number.
Aavas will probably fix the new tech and grow as per their goal of 20 percent.
The other reason for slower growth was attrition at lower levels( don’t know where I heard it) of the organisation. Apparently someone checked many branches and they were trainings everyday on the new system
The promoters are private equity firms and they need an exit sooner or later so growth will come back eventually.
The question is how soon is eventually.
OND Quarter? JfM quarter ? In a market that is bidding up anything related to real estate aavas has trended down.
The PE firms will want to do this quickly so growth may come sooner than expected for their exit.
The overhang on the price will also come due to supply from the pe firms itself.
In today’s market large promoter blocks are getting sold with no impact on price or sentiment
This window of opportunity will not last long.
Valuation wise at 3-3.5 times book it’s not cheap. The only solution is SUSTAINABLE growth. That will take two quarters of solid performance for the market to start believing them again.
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