Capital First Ltd


(Saji John) #81

Could this be the reason for the relative under performance of CAPF http://indianexpress.com/article/cities/mumbai/eow-probes-case-against-logistics-firm-for-fraud/


(Nikhil Rodrigues) #82

This seems to be case from 2010. CapF would already have made 100% provision for this. And 45Cr is too small to make CapF under perform. Their quarterly profit is 50 Cr these days.


(dhaval shah) #83

Also management in 2010 was of Biyani who is was not good at managing the company


(Saji John) #84

thanks nikhil and dhaval… :grinning:


(JKS) #85


Fabulous results… almost Bajaj Finance like
30 % increase in income & 50 %increase in net


(Venkatesh) #86

any views on this at current levels


(Saji John) #87

Vaidayanathan talking about future options for capital first http://economictimes.indiatimes.com/markets/expert-view/banking-licence-will-help-if-we-take-a-longer-term-roadmap-v-vaidyanathan-capital-first/articleshow/52140791.cms


(JKS) #88

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=3449261

results are out. Another flawless qtr…24% dividend announced as well


(Chemist) #89

Capital First Initiating Coverage Research Report By Edelweiss

https://www.edelweiss.in/research/Capital-First--Opportune-Transition;-Initiating-Coverage/33274.html


(Akshay) #90

Cap First’s results came out a little while ago.
Another strong set of results.

Disc: Invested - No transactions in the last 12 months.


(Chemist) #91

Capital First Posts 46% Rise In Q1 Profit


(Chemist) #92

Capital First top pick: R Sreesankar of Prabhudas Lilladher


(ANANT JAIN) #93

Just a food for thought (as pointed out to me by a very friend), Running a financial institution has to be about prudence, systems, integrity of the management and their track record and a vision for creating long term wealth. It is important to note that in a financial institution accounting profits can be very deceptive (PSU banks). Look into provisions, write-offs, of course asset quality but less from numbers and more from experience, scuttlebutt. A few calls to the sales reps will help you in understanding the asset quality much more than what the numbers tell you. Also the NPA numbers that are emerging now are a result of bad lending 2/3 years back and look them in that context, high growth can be used as a façade to cover them. Try getting an LAP, try getting loans for other purposes like heavy machine financing etc. and see the response. Visit a branch look at the kind of applications rejected, ask questions regarding %rejection vs approvals, look at the incentive of guy who is giving out loans also see if he is going to be there to collect the loan. Understand the attrition of people at sales level. How many of them leave in 2 to 3 years before the collection period?

I do get a very uneasy feeling when the management of a lending company comes out focusing too much on growth. In my opinion a non prudent fast growing lender is akin to a Ponzi scheme where the very high growth in loans presently overshadows the NPAs generated a few years ago but this can only happen as long as the music lasts.

Disclosure: Not invested in Capital First. The above views are generic and I have been using them in evaluating all lending companies.


#94

Thank you for the insightful note. In the Indian market apart from HDFC, GRUH etc, which companies have a history of prudent lending practices?


#95

I would say CanFin Homes.


#96

Sundaram, Chola and Repco are among conservative lenders.


(JKS) #97

In your barometric test, who passes the sniff for prudent lending practices in NBFCs? appreciate a response…thx


(Saji John) #98

Warburg considering stake sale? http://www.vccircle.com/news/finance/2016/08/05/exclusive-warburg-pincus-mulls-paring-stake-capital-first It is a paid article. If somebody has access to this article, please let us know the gist…


(Chemist) #99

In a chat with ET Now V. Vaidyanathan, Executive Chairman, talks about the company’s strong Q1 earnings and the driving factors for the growth

http://economictimes.indiatimes.com/et-now/results/capital-first-q1-earning-report-strong-numbers/videoshow/53537447.cms


(Chemist) #100

Hold Capital First Ltd., target Rs 747.0 : Jefferies Group

Read more at:
http://economictimes.indiatimes.com/articleshow/53596677.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst