I believe Elevation Capital that owned ~20% of the company is winding down the fund. If they’re selling such a large stake via the open market, the stock will remain under pressure until they fully exit.
Outside of Arman, all MFI companies have corrected some 30-40% off highs from last year including Spandana and CreditAccess. I think a lot of people are waiting to hear about regulations from the RBI, and there have been concerns about asset quality in the industry.
I’m using this as an opportunity to add Arman at 2x FY25 BV, and Credit Access at 2.6x FY25 BV, but we’ll only know from numbers / channel checks if the best of the asset quality this cycle is behind us.
D: invested, transactions in the last 30 days.
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