Poonawalla Fincorp and IDFC First Bank | Parimal Ade
Very well stated video. To inform the investors is paramount. They cant wait until results to disclose.
I remember something like this that Tata Motors did really well.
During Covid, there was a severe shortage of chips for electronic components in cars. Internationally, the supply was at a 6 months lag to the demand. In those times, Suzuki stopped adding many electronic components silently from its model and replacing them with analogue for some models. Example of speedometers turning analogue in some models of budget cars.
In such times, Tata Motors released a press release, wherein it clearly stated that lack of supply of chips would constrain production of its cars and will lead to lower capacity utilisation and thus, lower production and results.
THAT was my first taste of true corporate governance and its strength. I took the hint and exited the stock by some amount to invest it in other stocks for few quarters.
Poonawalla, if had trustworthy coporate governance, it would have come up and told us the issues of risk when the management was change. But it hide and kept investors under blanket, which is no doubt, unacceptable.
However, giving them a chance is a personal choice. I wanted to share my experience.
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