Is there something about this stock that we don’t know but market knows.
Its unbelievable that while the profits/revenues have grown by more than 100% over last 3 years, the price hasn’t moved one bit!
With a 20-22% ROE, the EPS double from here in next 4 years. The current PE is 26. If the price doesn’t move, then the PE will come down to 14.
A company growing with 22% ROE and 25%+ top/bottom line growth cannot be trading at 14. It hasn’t happened before unless there are nasty surprises along the way.
What are we missing here? Some say that its because of Jio financial hangover but is that really true? Of course Jio has lots and lot of capital but so do many big banks. Is it really this easy to build a granular consumer book, the kind of that Bajaj Finance has, that market is jittery about Jio financial?
| Subscribe To Our Free Newsletter |
