The loan book has increased by Rs 10,000+ cr QonQ. The NIM % is maintained at 6.32%. Provisions have increased marginally in-line with the loan book. Still, I wonder why the pre-operative profit has not increased? Any idea?
If I see the segmental results, the treasury income has dropped significantly from Rs 203 cr to Rs 89 cr, QonQ. This seem to have affected the profit numbers. Any idea what this constitutes and reason for such a sharp drop? Is it going to be lumpy or unpredictable in future? I believe a person who knows the banking industry can explain it.
Otherwise the numbers are as expected. Faster growth is desired, but without sacrificing the quality of loan book.
Posts tagged Value Pickr
IDFC First Bank Limited (28-10-2023)
IDFC First Bank Limited (28-10-2023)
Did the maths, q on q numbers on growth metrics are also very strong which is the main thing. The main thing to watch out is A. Whether deposits are rising. B. Whether loan book growth is sustained. C. Whether asset quality numbers are maintained. Rest all matters like pbt pat etc. fall into place automatically. So could be for other reasons.
On a separate note, the concern I have is lack of growth. Other banks seem to be growing much better. Even large private sector banks 7 times rhe size are growing at 20%, this bank is stuck at 25%. Expect better than this for an early stage bank.
Sonata Software A Turnaround Story (28-10-2023)
Good Sets of Results from Sonata Sofware in a tough environment.
The company is making key bets, especially in the AI and generative AI space. Sonata aims to lead the AI wave from the front with its AI power solutions of Harmoni.AI and we expect that to be a 25% of our revenue in two to three years’ time from now.
- Dividend of Rs. 7 per share ( Record Date: 1. 7th November, 2023)
- bonus issue of 1 (one) equity share for every 1 (one) equity
Vision of the company:
Deals in Pipeline:
IDFC First Bank Limited (28-10-2023)
Around 15-16 crore shares will get extinguished at the time of merger, so number of existing shares of the bank after merger will be around 690 crores and not 670 crores…
If we consider shareholders fund of 30700 crores and reduction of shares by 16 crores then that will raise BV per share from 43.5 to 44.5 i.e. 1 rs…rest of the 9 rs. will need to come from profits…adding 9 rs. in next 12 months seems impossible considering flat QoQ performance…
Krsnaa Diagnostics – what is the diagnosis? (28-10-2023)
JM Financial gave a target of Rs. 1050.
https://vid.investmentguruindia.com/report/2023/September/KRSNAA_Update_1Sep23.pdf
Coromandel International Limited (28-10-2023)
Positive news for fertilizer industries
Praveen’s Information Attic (Obervations, Lessons, Thoughts) (28-10-2023)
Also, let’s say we invest in 25 stocks. No one can know that the company you invest 1% would become 15% of your portfolio while the company you invest 5% of your portfolio will not budge. Also, your multi-bagger stock could be a company that was being sold at 50 p/e at the time of purchase rather than a low p/e stock. All one can do is try to be rational by buying when the opportunity arises in the form of a market correction or a correction n that particular stock or some capacity expansion that is ignored by the market.
While it would be good to have all stock purchases at market lows, this is harder than averaging down on a good company! This way I am not missing out on some growth. A good example is 3M. It has always been an expensive stock. We would miss out on say 200% return because we are going after 1000% returns which are rarer.
In the end, I guess each investor has their own style of investing. As long as it is as rational as possible, we should be fine!
Praveen’s Information Attic (Obervations, Lessons, Thoughts) (28-10-2023)
Valuations are important for sure. However, human instinct is to avoid averaging down when the shares we bought are trading at a significant discount. But good companies (market leaders, high ROIC, low debt, good promoter share) are better value at x/2 than at x. If the company is good, I don’t see why I would not invest when the shares are falling in price. I am thinking if tomorrow companies like Colgate Palmolive, Hindustan Unilever, Nestle all fell by 25%-50%, I wouldn’t hesitate buying them and averaging down on them as my time horizon is 10-20 years. If my weightage doesn’t go above 5%-10% in a stock on average then adding another 5% doesn’t really affect portfolio balancing. I think at this point, I wouldn’t want to be thinking in a formulaic manner.
E2E Networks Ltd – Listed small Cloud computing player (28-10-2023)
Latest article on E2E networks
Oberoi Realty-A simple real estate story (28-10-2023)
Good performance. Bottom line in coming qtr. will be better as inventories are ready for sale as project are completed/near completion and having occupancy certificate !