Hey team! There seems to be a clear divergence in terms of valuations of various HFCs. Despite consistent performance for almost a decade, DHFL struggles to trade at a book value relative to it's peers.
The issue clearly seems to be alleged promoter integrity problems. Let's address this HDIL issue head on.
What is the allegation exactly? That there is cross ownership, and that the HDIL promoters may want to use their stake in DHFL to influence decisions that enable them to siphon fund, Is that the issue? The shareholding pattern suggests no such thing don't know about benami though.
So if there is no cross ownership (since the 2012 parting of ways) Clearly the market cannot punish a company because the cousin of the promoter indulged in misdemeanors in a completely different company. This doesn't make sense. What am I missing?
Would really appreciate it if someone can educate me on the allegations against DHFL in particular not HDIL. I googled the issue and followed the story from 2009 to date, I don't see any thing that should raise concerns.
Moving on, on a side note.
A not so bright thing DHFL did recently was to move most of its offices from the HDIL building but still maintain a floor or two and call it headquarters. Why couldn't they just completely get out of the building and have no connection or association with HDIL is beyond me.
