Very good results.
Madura has also joined this time. it was drag on Parent since long
1 Like
Fabulous Results.
Growing on Full Throttle.
1 Like
Is there any Change in Collection efficiency in Karnataka after regime change ?
Can someone from Karnataka check the reality at ground ?
Anyways I am holding and it’s 28% of My Portfolio
Very informative document.
Most Important information out of it after High Court verdict they are going to enter in Telangana and AP where MF penetration is less than < 1%.
Hugh Opportunity.
1 Like
Current valuations of P/B = 4x, is there much upside left here?
And
Why is promoters holding doing down. Is this secondary sale?
Update on Tax Demand for AY 2018-19
The Commissioner of Income Tax (Appeals), has vide its order dated October 17, 2023, has considered and accepted the appeal of the Company thereby effectively rejecting all the grounds on which the Income Tax Demand of ₹122.63 Crores was made against the Company for AY18-19.
3 Likes
Wanted to focus on the borrower profile and how the company is scaling up to see if it is sustainable.
Some observations:
- New borrowers are being added with entry into new markets
- Some existing borrowers (3-6 years) migrate to > 6 years, which results in maintaining the ratio of > 6 years pie
- Some of existing borrowers (3-6 years) stop borrowing and churn
The GLP ratio per vintage profile shows a slightly different picture.
- The quantum of GLP for new borrowers is roughly constant in last 3 quarters
- More loans are given to existing borrowers
- GLP ratio of > 6 years is also fairly constant compared to Q4FY23.
This means that the company is issuing smaller ticket sizes compared to last year. May be because they are scaling up their home improvement loan, which has almost doubled since last year. This is also reflected in their loan ticket size, which is much smaller for home improvement compared to income generating loan (IGL).
So, all the three checks out well: Borrower vintage, GLP distribution and Loan ticket size.
The good points are:
- They are not adding risk by scaling their new customer base and associated GLP. So, seems like a sustainable growth with a tight control on NPAs (GNPA is 0.77%).
- They are also able to retain their customers better which establishes a strong & stable base
- They are scaling up home improvement, which is good as this sector is expected to grow
- Retail finance is growing fast, but has a smaller base. But this is another growth area.
Disc: Invested
5 Likes
Important Takeaway for me is their entry into Telangana and Andhra Pradesh.
After SKS Fiasco these states are highly underserved, big opportunity available for Credit access.
it’s only matter of a year or 2 before these states become part of their legacy portfolio.
However they are treading cautiously.
Capturing Border districts from Maharastra,Karnatka,Tamilnadu and Odisha
Recent rating upgrade by CRISIL to AA-/Stable.
This could reduce their cost of capital by few basis points.
3 Likes
Best Small NBFC(10000-25000 Cr) Award
1 Like
Satin is struggling in Punjab.
Any other state where there is trouble as such from Microfinance point of view.
And if Credit Access has exposure to that state ?
If not then Market Leader shall command better valuations
1 Like
