Returns calculations clearly makes sense from date of merger only. Prior to that IDFC Bank management was running this place. Unfortunately the FY 18 was very bad for IDFC Bank with treasury losses in Q1 19, followed by big loss in infra in q2 and q3 19. We cant stick stock price reduction by old management on new management. What can new management do about stock prices prior to their taking over date.
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Agree with you on the capital raise point.
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Agree also on 1st principles approach.
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ROE thing, I already answered they are making 10% only. I didn’t find misalignment, have explained in detailed note. They are raising capital at premium which is increasing their BVPS from time to time. Hopefully by the next capital raise, the profits will start talking and stock will go up again. We should ask them in the AGM when they might raise capital again.
Ps on a lighter note, wondering why this stock is discussed so much… i dont see much discussion in icici hdfc kotak etc
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