just checked he is adding seritage growth properties and he is too sure for it. So i am sure he cut his stake to buy in seritage
Pledge Releaseā¦
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Company Secretary resigns. Is this something to be concerned ?
what is the source the news?
CFO has been changed as well
[https://www.bseindia.com/xml-data/corpfiling/AttachLive/2fd73e8b-aed9-41b8-8d78-fd81a2d48744.pdf]
Hi,
I see that a few of youāll were looking for Mohnishs clarification on the Edelweiss investment. Attaching the same here. I found it on Scirbd a short while back, and it was then taken down.
I am personally interested in this company, ofcourse with whats been happening recently with them in the press, I too am guarded. Am not invested as of now. But am keeping a very close eye on it.
Am new here, so if my post does not meet the standard norms, please let me know and I will make a note moving forward.
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Thank you @sandeeptv, this is very useful.
Looking at the valuation numbers mentioned here, it seems like this post was written when Edelweiss was trading at its lows - in the 30s.
Also seems like Mohnish does make some very high level calculations - he says that the book value is $ 1.5 billion, whereas in reality the book value has never exceeded $1 billion. Iāve seen him do this in interviews about Sunteck as well where he had once said on an Indian business news channel that Sunteck has inventory which is 20 times its market cap.
But nit-picking aside, I agree 100% with his thesis that Edelweiss has some excellent businesses which are on their way to becoming bullet proof. The de-bundling and individual listing of some of these business will unlock a lot of value for shareholders. Kind of confirms that this is excellent risk-reward.
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Thanks for sharing this !!
The most debt light, high Roe, high OPM businesses are - wealth management, asset management and asset reconstruction business, which the CEO mentioned to demerge. So, ultimately the question is we value these three companies to get to our answer. Demerger is most likely to happen once they find someone to infuse some money as equity in asset management and asset reconstruction business.
Hdfc AMC is valued at 43 P/E, if we value the asset/wealth Management business at 20 P/E - that would give around 6,300crs market cap (Est PBT- 317crs for wealth/asset combined, 9MFY21 PBT - 242crs).
The money infused for asset management and asset reconstruction business maybe used to fund other 4 business lines ( corporate, retail credit, general insurance, life insurance).
At current marker cap-5,700crs, assuming the businesses are spunoff in near future, there can be huge upside.
Another thing, I remember Mohnish Pabrai saying on CNBC that asset management companies are nowhere to go but up. However, he couldnāt find any AMC undervalued for him. (Aug 19, 2018).
Maybe you guys can share your views on this.
Views maybe biased, I may change my mind.
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Another interesting point, take a look into Anand Rathi wealth management Drhp (try google), on page 125/126 you will notice Edelweiss is among the top 2-3 non banking profitable wealth management cos, IIFL wealth management is on the top of the list. As of 31 dec 20, IIFL wealth management has AUA of 1,68,200crs, 9MFY21 revenue - 1,032 crs, PBT - 289crs only from wealth management business (leave asset management for the time being). It has market cap of around 10,000crs as of today.
For Edelweiss Wealth Management - 31Dec 20, AUA is 1,45,100crs, 9MFY21- Net revenues- 722crs, PBT- 228crs, PAT- 181crs. It feels like EWM could have valuation at least equal to that of 10k crs. If not, then give a P/E to this business of atleast 20 because of good business model, strong brand, high roe, high margins, high growth.
PAG deal is approved and cleared by regulators, it may be demerged by beginning of next year (mentioned in an analyst presentation).
At this valuation, if I am valuing EWM at 10k crs, I am getting its other businesses for free.
What can go wrong ??
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I agree. Am very interested in Edelweiss, just that this recent whistleblower issue is whats keeping me from investing. Else I would consider being heavily concentrated in it.
Plus the added stress from NPAs courtesy first and second wave is still not fully realized. They may increase provisions for the same and that may devalue the stock a bit.
Hence am waiting for the results to come out and the annual report as well.
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Does anyone on this thread think that Edelweiss as a consortium of 10 business may be a survival risk? If yes, I am very keen to understand your thoughts. It is definitely trading at valuations that suggest that the market believes it is a survival risk.
Though not exactly same, bt how does Edelweiss compares to JM Financial. Wat makes an investor chose Edelweiss over JM Financial?? Valuation-wise, both are roughly trading around Book Value but JM mgmt seems more conservative, thr investment Banking biz reputation is good and the co. seems well capitalized to take advantage of revival.
for me edelweiss standout with brand value. Retail knows edelweiss but not jm financial. so anyday i will choose edelweiss as a business
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fullly agree, thats why i am invested in it. Nothing to loss. But i can understand why market is not giving high valutation to edelweiss bcz market not able to understand that EWM promoter will be PAG not edelweiss, as market is concern over allegation on edelweiss. situation will be better next year. expecting atleast 3x return in an year
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Forgot to mention- post demerger Edelweiss will have 38.5% share in EWM, which can increase to 44% and rest is with PAG. Management may change but business model and other things will remain same, they have mentioned in a presentation.
About the size of the opportunity for EWM business - in FY17 Edelweiss was doing USD 17 bn of AUA and Kotak Mahindra Private Wealth Management was doing USD 29 bn of AUA and still going upwards today. So, one can buy into growing business at distressed valuations.
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yes, I know that. thatās why invested in it. Right now this is the safest bet even if we are not missing any clue. And I donāt think I am missing any clue. Not gonna let my confidence down just because the market is not conforming to reality.
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Any idea when the quarterly results will come?
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