Muthoot Microfin, I feel has good growth story ahead, Here are my thoughts about it:
- Last year they had 163 Cr Profit. This year they will clock close to 500 Cr.
- Currently it is having a PE of 23 as per Screener, after they report annual results it will be close to 8, that will be dirt cheap.
- Recently they got 750 Cr in IPO money which is not costing them anything. so considering any Microfin charges 22-23% interest, they are set to get additional 200 odd crores of profit.
- They are expanding beyond Kerala and hopefully that growth will add additional headwinds.
- Whatever i read about the group, looks like they are honest set of people.
- Also, CEO is a professional and not from family which i feel is additonal plus.
- Family holds good amount of holding, meaning skin in the game.
- If i look at the other listed players, this stock should be going to around 20K crore market share easily in next few years.
Disc: No recommendations, i am invested.
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