Absolutely, missed this NHB funding, which is critical. Good observation.
Posts tagged Value Pickr
GRUH Finance – mini HDFC (29-09-2015)
Advantage of being classified as HFC is simple. You get finance from NHB. Banks have source of low cost CASA deposits. For HFC, low cost NHB funding is great to have.
GRUH Finance – mini HDFC (29-09-2015)
without hurting any one's sentiments, I'm surprised why this question of 'having different subsidiary' should be seen as something that needs investigation by Sherlock Holmes?! May be there is some reason, but why speculate that the reason behind this is with ulterior motives!!
"If you think like an owner, you will know why..."
Answer: The reason is, lending money with around 10 lakhs loan is a completely different ball game altogether. You cannot have same appraisal process, risk management systems for both! A company can manage both, but managing differently could lead to better business properties for each.
For example (1), in recent times Maruti has branded its newest small SUV (S Cross) under NEXA branding. Why? A premium customer requirements are different than a sub-premium customer. I'm not condescending anyone one. A premium customer looks at overall ownership experience like having a relationship manager, buying experience, features, ambience, while an Alto customer will come pay, take the car. (again no disrespect to Alto owner, just putting things in perspective).
Example 2: You cannot have a single relationship manager for customers with 10 crore net worth and customers with 50 lakhs because the requirements are completely different, the investment avenues for a 10 crore customer are too many, for example.
There is simply too much of background check/work that needs to be done while lending to a non-salaried customer, why a BIG bank like ICICI bother about this as their lending cream is with working capital loans, big ticket loans, developer loans. An HFC has only ONE business stream - LEND to low income, non-salaried, so they WILL have to take that pain of appraising a prospective customer.
Not sure, if I'm able to put what's in my head into my writing. ANYWAY, this is not at all a point to consider while choosing to invest in HFCs, in my honest opinion and I could turn out to be an idiot but at the end at lease I would know why I became an idiot!
Well, my honest views, not posting towards anyone!
Page industries (29-09-2015)
You would need to keep in mind that we are not justifying adverse combination of valuation vs. expected growth
Ranvir’s Portfolio (29-09-2015)
IT is not represented in my portfolio as I just can not understand IT.....its beyond my circle of competence. Not that I understand pharma too well either....but at least the more I read, the more I learn about pharma stocks. But in case of IT, even that doesn't happen.
I have reasonably good understanding of Banking and FMCG stocks.
As far as agro chemicals are concerned, I would be glad if you can suggest any names.
About KVB and Jagran Prakshan, I've also started having my doubts. I think I should wait for another 2-3 quaters to see if there is any uptick in performance.
Shilpa Medicare -Racing away on the Oncology API highway! (29-09-2015)
Hi,
Anyone attended Shilpa AGM yesterday ? please do share the insights from the meeting.
Thanks & Regards,
Anil Konda.
8k Miles Software Ltd, Cloud Computing (29-09-2015)
I tend to to agree with the article on valuations. It earned around 20cr last financial year as net profit.
Even if you take around 30-40cr as net profit for FY16 (taking the June quarter results as the base), I wonder if a market cap of 1,500cr is justified.
This is a fluid market and things can change rapidly.
I don't see a margin of safety in the investment. 
Am I missing something?
Skipper Ltd., distributing Power and Water, Is it a moat in making? (29-09-2015)
Hi VI
From Annual Report 14-15
Mahesh
GRUH Finance – mini HDFC (29-09-2015)
While I agree with you on not comparing mortgage rates of US and India, your conclusions are contradictory. If real mortgage rates are worse in India crisis should have happened in India rather than US.
In reality, crisis precipitated because of large scale mortgage application fraud, stagnating real income and rising real interest rates before crisis. I don't think any of these situations remotely exists in India. Even valuations are not outrageous. As an investor we are far away from the wrong side of the sword.
Regarding non-formal sector lending, we should consider it an opportunity since mortgage fundamentals are based on income potential rather than it is coming from formal or informal. We don't have to go too far to have comparable business. Just check what was Sriram Transport Fin doing ten yrs back. They have created an empire out of lending to informal sector with absolute volatile income profile.