Stance: Invested
The QiP should have tremendous growth potential for the company. Very few NBFCs are showing such numbers in Indian market.
Book value of 470 Cr. Post QiP, this book value should be 700 Cr (470+230). That means, company is trading at around 3.5 Price to book, post QiP.
With a RoA of 7.6% and RoE of 35%, company is fully utilizing the capital adequacy norms. Further 40-50% growth seems to be too good. However, am not sure how long they can sustain this level of growth in microfinance industry. Any views from others on this?
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