CSL Finance Limited - Transition To NBFC

(Gaurav152) #21

I think they are just starting out and it is the first loan the company has taken …wont want to read too much into it just as yet…guess the banks would reduce the rates once they get a track record of execution…still is to be monitored in time to come…
plus they are lending in a segment where the loans duration is less than a year and the rate at which they lend are higher than retail lending…

Will not try to justify my purchase…this will require to be monitored closely in the next year or so…


Q3 Result Update
Revenue has decreased this quarter which i beleive may be of two reasons 1) Demonetisation 2) As this is 1st full quarter which includes only interest income and no income related to securities, so some impact of it.
On other side company profit has also remained same despite decrease in revenue due to increase in yield as companys cost of borrowing has reduced .

Employee cost has further increased maybe they are increasing their team for future growth.
9 month EPS = Rs 30 and Book value would be around 235 per share.

Company has shared investor update which includes:

CSL Finance Ltd is engaged in providin g mezzanine funding to smal and medium-sized borrowers in real estate development and education sector for meeting their short-term funding requirements for projects which are [n the last stage of completion The company operates out of Delhi and the loan portfolio of Rs 107.47 Cr as on December 31, 2016, is concentrated in the Delhi-NCR region

It proposes to enter into SME lending in Tier 2 & 3 cities with focus on relatively stable sectors like education, medical and retail traders. The company is in the process of building teams and processes for the same and aims to commence lending in the new segments in fourth quarter.

Demonetisation Impact - The good news is that there have been no defaults on its mid-sized corporate loans. In fact over 29% of the loans were prepaid by its borrowers who decided to reduce borrowings in uncertain environment. This has allowed the company to continue evaluate loan proposals and give out fresh disbursements.
We may see gross IRR of 18-20% from existing 20%-22% on our mid-sized corporate loan segment in the next financial year. Our cost of borrowing on our existing facility. has come down by 250 bps.

Disclosure - Holding few shares.

(dsaraf) #23

ARNoteslinksandreadings.docx (7.7 KB)

I have read through their AR’s from 2008 onwards and compiled the ost important points here. Any feedback and carry forward of the discussion would be nice. Also, interesting to not that Gaurav Sud is an adviser to the company.

Disc: Planning to enter

(bullrun1988) #24

Csl finance numbers looks so speculative…high margin business ?? how ??

(Jatin Soni) #25

CSL board to consider Preferential issue and convertible warrants on 10th Aug.


(bullrun1988) #26

I think this result will show the growth for Csl finance in present market scenario…preferential issue shows that management expecting growth.

(Jatin Soni) #27

Co raises 54crs from marquee investors like Madhu Kela, Ajay Relan, Akash Bhansali, Aditya Parekh, Gaurav Sud.


(bullrun1988) #28

As we expecting… now management is serious about the business and by issuance of shares to marquee investors showing the future of Csl finance.

(swamiprasadpv) #29

I bought yesterday after company raised 54crs from marquee investors like Madhu Kela, Ajay Relan, Akash Bhansali, Aditya Parekh, Gaurav Sud. and also after reading all comments in this forum. Not much research done , but i feel its a decent company. i was searching for a decent small cap NBFC company which is capable of growing big. Bought shares with the tax free profits booked in some shares last month. I am expecting more suggestions and valuable information about this company from valuepickr forum. Thank you.

(bullrun1988) #30

Very informative article on CSL finance on Rakesh-jhunjhunuwala blog…please share comments for any other info regarding Csl finance.

(Sd) #31

Great Deepak that you find all multi-baggers.
I have observed similar results for Thirumallai Chem and Chambal Fert.


Thanks for your kind words sir . But it’s all through learnings that I have got from Vp top contributors nd other members , and some others seniors in personal life which guide me from time to time .
For ex @Gaurav152 first attended the agm and gave boost to my confidence to a great extent .
All top contributors in various thread explains so detailed and politely for good of society , it’s just overwhelming .

I just try to research and write about a stock I found steady on fundamental and low on valuation on Vp , so that I can contribute a little to it .
Also it helps me to get reinforcing confidence if someone with high insights confirms on to story .
All others like price performance is just a plain luck .

Thanks again .

Disc - invested

(dsaraf) #33

Their Annual report should be an interesting read. Waiting for the same

(Jatin Soni) #34

CSL_ANNUAL_REPORT_2017_106801.pdf (1.8 MB)

Annual report 16-17

(Jatin Soni) #35

(yudiagg) #36

Gentlemen- I would be very careful about investing in a company that has
reducing top line - which is “only” about Rs 40 Cr now. I am not aware of
any other business where OPM can increase from 3.5% in 2012 to 72% in 2016.

I do not know all names - but one of the persons to whom preferential
allotment is proposed to be made is" Madhuri" Kela and not “Madhu” Kela ( a
very well known authority). You may like double check it.

Disc ; Not invested. Only got interested to check more details based upon
foregoing discussions.

(Raj) #37

Please read the BSE announcement by the company as well as the blog for some details on who is who. It might clarify some doubts.


(yudiagg) #38

Thanks for sharing the investor presentation. After a study of all the
documents, including annual report, I would not put my money in this

Disc ; Not Invested.

(dsaraf) #39

Q1 results out. Impressive AUM growth. Company was at 135cr as of March 31st. Book stands at 185cr as of June end. EPS at 8.3rs vs 5rs QnQ
Remember we can’t compare YoY business as 2016 includes numbers from the trading biz as well.

(dsaraf) #40

I think you should go through the AR notes I posted. You’ll understand why the numbers are optically misguiding