not sure about this . my reading is the day the co's ROE slips sub 25 PE will drop disproportionately.
Posts tagged Value Pickr
GRUH Finance – mini HDFC (02-10-2015)
the co is staring at a ticking time bomb - which is a high impact highly likely mudra bank type initiative by Modi to provide affordable low ticket housing finance to the self employed (big vote bank of BJP ) - How can profiteering from the helplessness of a segment like the non documented self employed be a sustainable moat if they are privy to more information as to who is charging how much + if they are a big vote bank + in age of aadhar+Mobile+low cost bank a/c ?
GRUH Finance – mini HDFC (02-10-2015)
I wanted to make this point but,
the RoE will come down only in the short term as the funds lie un-utilised and as the business can generate high RoE, Gruh will lend more money with the increased equity base (remember, for finance companies leverage is allowed so GRUH can probably lend 10 times, not sure what's the current leverage of Gruh) and over 3 years or so RoE will go back to previous levels and market knows this so the PE will NOT drop to proportionate levels.
GRUH Finance – mini HDFC (02-10-2015)
Equity dilution will depress ROE - So PE will come down to 20 -
Cupid Ltd – Helping the world play safe! (02-10-2015)
I gather from Abhishek Kulkarni, a young n persevering full time investor, who attended the AGM that it was a well managed event, with elaborate discussions about the business. The Company is doing very well. The Export sales are not hedged n so are benefiting with the falling rupee. Rubber prices have also been falling so the business is currently in a sweet spot. The Co. has also recently won a Govt. contract. All the shareholders were later taken for a factory visit.
My own expectation is that we can expect good numbers from the Co. in the foreseeable future. An interim dividend along with Q2 results is also a possibility.
GRUH Finance – mini HDFC (02-10-2015)
Im feeling bit dumb here. Can you please explain what is logic behind diluting equity by 30% and recalculating book value?
GRUH Finance – mini HDFC (02-10-2015)
Im feeling bit dumb here. Can you please explain what is logic behind diluting equity by 30% and recalculating book value?