I have no position in this company .
I have started studying financial sector recently to invest. BULL in BEAR Market I have mentioned my current position .
Now I have some question on this company - from big picture view .
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This company has taken huge write offs last year becos of which its collection efficiencies, Net NPAs and PCR has improved … What makes you confident of current book value & the company will not do the same kind of write off say every 5 years .
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In loans - its repeat customer has increased from 67% and 71% in one year and loan growth is > 20% ie it had more than 20% growth in existing loanee customer base . Is company evergreening loans by giving more loans to same customers so that they can pay off old loans . Is there a RED Flag here …
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In borrowing its profile has shifted dramatically … CD and Institution deposit has increased and term loans from bank has reduced - What is implication of this change over – CASA is just 6% against 40% for good private banks - Can it impact its margins in coming quarters
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Finally with last year EPS of just 0.6 Rs and book value of 140 odd why do you think this stock is bargain at Rs 250