Yes I m happy as my conviction has finally played out even though with some delay. Meanwhile enjoyed the good dividend yield as well.
Absolutely agree with you. IBULLS is not a high quality HFC and cannot be compared with likes of Gruh. But my bet was not on the quality or scorching growth of the business with consistency but on the undervaluation and it was certainly a mis-priced bet. When you have a PSU HFC like CAN Fin which was trading at higher PE than IBULLS despite much smaller in size with a PSU tag, it made me look like an opportune buy. But it had awaken only after taking very long hibernation ( another hint that market is not so convinced on it ).
IBULLS started paying higher dividends since last three years and has improved a lot in their NPA ratios, cost per employee , cost of funds etc … ROE is improved to 26% levels and their CAR is around 18-19%. See no reason for any dilution of equity for the next two years and the higher dividends seems sustainable now. Infact if they can strive and attain AAA+ rating their cost of funds would further go down improving the NIM’s.
Markets apathy towards the group is slowing changing though i am not expecting any dramatic improvements here.
All in all not a quality company like GRUH to buy but i am not buying it at 32 times unlike GRUH. My buying price was at 6 PE and i still strongly believe that it will out perform GRUH for the next three years with sustainable dividends. But the story is not so compelling to buy and hold for decade long.