Great day for TT holders. Just the beginning.

FINAL APPROVAL

Investment thesis of Suyryodaya Small Finance bank:

Disclaimer: You can assume I am biased.

Founder is doing few things which I find it exceptional

• Unsecured loans [MFI] will be profit maximizing segment and secured loan business will provide stability and scalability to the business.

No other bank or NBFC has either taken a) CGFMU insurance cover or b) Creating Countercyclical provision of 5-6%

• By taking CGFMU cover its converting unsecured loans into Quasi secured loan and fixing the maximum loss at 3% of book [provided total NPA remains maximum at 15%].
• Counter cyclical provision : Bank is planning to create an additional contingent provision over and above regular provision. Bank wish to create 5% to 6% contingent provision by FY2026 by creating 1.5% contingency provision every year. [i**n addition to taking CGFMU cover, so in effect even in case of 20% credit cost event, bank will suffer only 3% credit cost in that year]**

• In case of Secured loans, majority of current book is focused on credit tested customers and accordingly yields are restricted to 12-13%. At the same time management has launched and testing various high yields products like Micro housing loans, Micro LAP, Small Business loans etc.
• Its not building extensive liability branches and not spending disproportionate amount in raising CASA. On the contrary in will rely on granular term deposits and other stable sources of finance. This will help it to keep the Opex low. Almost everyone is worried about whether Suryoday can build low cost CASA, but its immaterial. What is required is can they build granular book, even at 1-2% extract cost compared to top bank. Suryoday cannot match the low cost of funds of top private banks and PSU banks atleast for next 7-10Y. When business model is based on serving underserved and unserved customers and not prime customers like top private banks, then CASA is NOT MUST to have BUT ONLY GOOD TO HAVE. What is MUST IS Granular liabilities and NOT dependence on WHOLESALE LIABILITIES.

Link to full note: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.

Hi, Thank you and great initiative .

I am learner for momentum investing, which universe you chose like NSE 200 or 500.

How can we ranking the stocks as you mentioned Z score , Which website we can use for filtering the stocks ??

Any additional entry or exit criteria other than Z score.

Once again thank you…

Markets are very kind to Electronic Components with Inds P/E at 84x, here’s a API manf doing PCB assembly for glucometers (own brand) potential to expand into various other medical equips, currently at sub 30x P/E.
Apart from corporate governance issue in past, where am I reading this incorrectly, kindly guide.

Now that I am working full time, I have enough time to update my progress here. – you wrote this in your post…

Hi Ishu, Sorry to jump in and my word may be little harsh – let me say sorry in advance if it hurts you in anyway. If you wish, I will delete this post.

First let me compliment you, you seems simple guy, and this is big thing in current world, my compliment to you that you attracted person like hiteshbhai to comment in your post.

However, I believe you seems lost in with current bull run, you seems trying hard with your small portfolio and trying trading for few clients – I believe my presumption is right after reading some posts in your thread.

I may be echoed what others try to say, let me be straight – you should not do this full time with such small PF. It stricly to be done part time. You must aware about TAR – Tariq H, he must be putting long hours of day in investing and he also have income for his wrap (which is btw excellent at this price), even though he contine with his current job.

20-21 is the most imp age for carrier building. Please find regular job to generate regular income, your current PF won’t give you anything and you will regret your decision later in life. If you are passionate of investing try to find job in equity research or trading firm. If this may not be easy than pass CFA or relevant exams in your free time.

Once again am sorry for my post, but I can’t resist to give you my opinion/feedback.