it’s a fair question. here’s my response:
Bajaj Finance: P/B is a more accurate value measurement for a debt-laden finCo. But I use P/E here to keep track at a portfolio level (since I don’t own any other direct finCo) whereas during my analysis I also look at P/B.
Tata Investment Corp: TICL operates almost like a mutual fund (prima facie, wanted to index TATA group of companies and TICL then gave me a decent margin of safety) and has large non-strategic holdings. More so, it is registered under the category of IC while being an NBFC i.e. doesn’t take debt to grow.
Hence P/B might not be an accurate view of value considering its underlying holdings are primarily non-financial companies. However, discount to book is a key metric that I continue to track using this spreadsheet public in VP.
Overall, your question is pertinent but for ease of highlighting entry valuation in the portfolio, I publish individual portco P/E ratios. Hope this answers your question.
Disclaimer: I am neither a financial nor a SEBI registered advisor. The content shared here is only for learning purposes. So please use your discretion to make any buy/sell decision and not use the above as a recommendation.
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