Great Work Gurjot
Like everybody else I am also dying to know what you thought of the MD – Minesh Doshi
a) Did he share anything about future prospects of the company
b) Did he come across as a honest and straightforward guy
c) Was he humble and did he give you, a minority shareholder adequate attention or was he a bit authoritative
d) What was your overall impression of him
I like these guys,I think in NBFC business having honest and ethical promoters is half the battle won,almost, everytime investors lose money investing in an NBFC is when they invest in promoters who are dishonest and over aggressive
SEBI thing and CSR are minor things, these guys are facing teething issues with going digital, moving the dividend payment system from physical to digital is a very positive step long term, short term pain is guaranteed though
It is great to see physical growth in contracts and opening of 3 more branches,plus the supposed branch in MP – this shows that management is stepping on the gas
The Negatives –
The ecosystem in which this company operates is under a lot of stress, it was heartening to see physical business growth, but the environment is stressful, if anybody can make it work, these guys can,let’s see
At some time in the future, these guys will convert their unsecured loans into equity to increase capital base, this is normally done at book value, it is both a negative and a positive, negative because we get diluted, but positive because it gives the company even more operating leverage to drive business growth,everybody asking why these guys are working at no salary, this increased equity stake is what will be their payoff in the future for the work they have been putting into the company, from whatever I can decipher from their behavior, they will do it in a way which would be least harmful to minority investor interests
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