I also like the conservative nature of the management of Arman and indeed I was stunned to listen the previous con-call where they mentioned they have nil customers with those taken loan from 4+ lenders, specifically after listening to the con-call of CAG where they mentioned how the delinquencies are higher (in their portfolio) among those having 4+ lenders. So that gives me more conviction about Arman. Waiting for the Q2 results tho.
Credit access grameen mentioned about stable Q3 and things to improve from Q4 onwards. So this makes me ask a question since majority of the AUM Arman has in the MFI division and Arman also mentioned in the previous quarter con-call about how due to abundant of availability of lenders people are now not willing to attend JLG meets and other things. So I’m a bit conservative when we can see the growth in disbursements and thereafter profitability unless we see some consolidation on the supply side. So going forward I believe we can see some muted quarters for the best case scenario. Also the cycle has turned negative from last quarter only (i mean this is my understanding feel free to counter).
But yeah I agree about Arman being the best among best because of how Alok Patel works and how they have consistently came stronger after each crisis. That makes me want to bet on Arman even more. Planning to buy in tranches till the cycle reverse(given thesis doesn’t changes)
Disclaimer: Holding a small position.
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