Piramal Enterprises Ltd

(saumya) #1068

JM Financial said, strong promoter-backed NBFCs and HFCs will get disproportionate share of funding and competition from new and small NBFCs will come down massively.
Broker-backed NBFCs like Edelweiss and HFCs with ALM mismatch DHFL, PNB Housing, Repco will see growth slowdown.
It is up to us to separate wheat from chaff


(saumya) #1069

Piramal Enterprises : Board approved the allotment of 3,22,240 equity shares or face value of Rs 2 each at a conversion premium of Rs 2,688 per share pursuant to optional conversion of 8.056 CCDs of face value of Rs 1.07,600 each aggregating to Rs 86,68.25,600.

(rupaniamit) #1070

@paragbharambe - its high churn rate of loan book (repayment + pre-payment) + securitization of high ticket loans. Mr. Jijina’s explanation to a question asked during Q4FY18 con-call:

(saumya) #1071

(Saji John) #1072

(divyansh ) #1073

What does this imply … Is it a way of raising funds or seizing a opportunity considering the inherent value of the business …
Disclosure : invested


Few days back - NBFCs have poor governance, low promoter holding, toxic assets etc etc, But we are different.

NBFC Stocks crash across the board including PEL

Today - Pls don’t paint everyone with same brush. Some NBFCs are critical for the economy. We should not attack all of them. But we are different.

How many biz leaders attack peers at time of their weakest surroundings? It is good that good sense has prevailed on him. He must learn how other NBFC promoters presented the issues for the industry as a whole.

Disc: No holding

(Marathondreams) #1075

(gneop84) #1076

Based on the interview to ET, he seems worried if there is large scale run on the NBFC which might in turn cause some concerns even for PEL , at the same time is also scouting for opportunities but probably wants to forewarn the government . there is definitely some more that he might be privy too than meets the eye.

Disclosure : Invested : can’t make up mind to invest further :slight_smile:

(Marathondreams) #1077

It seems to me that the market is overlooking pharma side of PEL in this whole NBFC fuelled downfall. Although PEL’s finance business is growing very fast and is now contributing more than 50% of the profits(which may slow down post ILF&S issue) , PEL has a very strong and stable export oriented pharma business. In current rupee depreciation, this business will benefit a lot.

(Parag) #1078

The market sometimes exhibit a tendency to “throw a baby with a bathwater”. The current situation looks a lot similar to that to me in term with persistent selling in PEL.

(Raj A A) #1079

Demerger at Opportune Time

(deeps2884) #1080

A lot of data in this blog is just wrong and even does not provide any insights (you could gain that information with just cursory Google Search). For example data like PS of Rs.280 per share and P/E of 8 (you need to remove the one time income otherwise you would make a wrong investment judgement with just cursory reading).
Current year EPS is ~Rs.100 per share (excluding one time adjustments)… and their is no mention of investment in Shriram Group which is worth ~Rs.500 per share.
Even about demerger umpteen information has been given by Mr.Ajay Piramal that its medium term 2 years back (FY20 types).