I have read much of this accomplished persons blog and continue to follow his readings/ teachings/ learnings.
In my opinion, his writings are unparalleled.
His blog is a must read even for those not related/interested in stock market.
The purpose of anyone’s careers/work/profession is not only to make money but also grow, survive, adapt. He is a master at linking excerpts from Buffet, Munger ,accounts, finance, teachings on evolution, adaptation, and linking them in plain english language.
Canfin has been growing superbly, need to study more on it. Do you know why its NIM , ROA is lower at 3%, 1.2% compared to Repco at 4.4%, 2.3% respectively? Is it because Repco lends to non-salaried segment which is at higher rates?
Look at the growth of CANFIN, it is expected to grow the fastest with 41% PAT growth expected over FY 15-18 (source MOSL)…they have target to reach 35k crore loan book by 2020.. So no doubt repco is great and I hold it… but I would say better to diversify in two hosing finance companies(esp when options are available) than betting too much on repco,
this advisory service has such big impact?think Vietnam plant has commissioned or current qtr perf is good
Still not convinced.Please go through RJ interview explaining his conviction on Indigo
Can you imagine he invested Rs 300 crore, he has taken away Rs 3,500 crore as dividend? The Return on Capital (RoC) is 300 percent. And if you just make his first quarter’s earnings into four he will earn about just 640 multiplied by 4 is Rs 2,600 crore which is about Rs 80 per share. Rs 80 per share what price is it coming. At 765 it is coming at 10 times earnings and I am very bearish on oil prices. I don’t see them going anywhere in 3-5 years. So, it is a leader, the industry – one large player is shrinking, others don’t have money, he has got the largest planes on order, he is the lowest cost operator. It is a no brainer
discl- bought more today
I have been following Jana on Twitter and also through his blog and have been pretty impressed by his thought process.
desaidhwanil,
Latest presentation of 2Q16 shows a debt of 139cr. mgmt previously said cash balance is sufficient for phase – iii auction fee, looks like it is not the case now.
Also can you help understand why do you say roe is not good measure for enil? investor will not benefit if most of the accumulated cash is used for frequency acquisition right? I was expecting roe to reach some good number after some time from frequency auction. Is that expectation wrong? last 10year/5year/3yr roe from screener is 10.25/13.6/13.87 which is not great number.
Thanks in advance !
@dhawaldoshi
Management indicated that 16 crore would be funded through accruals & debt. Can’t understand their rationale.
BALTIC INDEX WARNS OF DISASTER CLOSING IN
https://www.dollarvigilante.com/blog/2015/11/10/baltic-index-warns-of-disaster-closing-in.html
If we see the HFC space, only HDFC, GRUH and REPCO seem that they can continue to grow at 20-25% for long time without diluting thier equity since they have high ROE.
If we look at LIC, GIC and CAN FIN HOMES they have less ROE due to lower margins and hence to keep growing at 20-25% will be a challenge and they will have to dilute equity to maintain the CAR of 12%.
So is REPCO which is trading at 4-5 X P/BV still a good buy ???