Aavas Financiers :: Banking on the unbanked

Stock Opportunities Not-so-Hidden Gems
105

Maybe because lots of competition is coming not only from affordable housing NBFCs but also from SFBs, MFIs.

Price struggle in the LT is due to valuation correction. As you would know, at high valuations lots of things are baked into the price, and they need to go right for valuations to sustain.

106

Probably because the pace of growth is not the same as that of peers

Aavas

image
image3204×214 41.2 KB

Aptus

image
image3204×214 41.7 KB

Aadhar

image
image3204×214 39.5 KB

107

This is pretty huge position of my PF. I am happy with the results but overall down on net basis on this stock.

My Observations / Learnings

  • I brought it too expansive - But now I would say the PB is justified by the quality
  • With the promoter changes done there is nothing hanging on the head
  • I would say the slower growth rate is due to stricter underwriting standard. Look at the asset quality
  • ROE and ROA is not at the levels which would be eye watering but at this levels and at this price there is very little downside left.

Disclosure: Already hold significant exposure and would increase my exposure in 1250 -1300 range by 25%

1 Like
108

Are we expecting asset quality deterioration because of higher food & energy prices? Given it will impact lower segments of society. At the same time the loans are secured

109

prices seem to be around 1100-1150, did you add more in your portfolio? If yes, what are your current thoughts regarding this?