IDFC First Bank Limited

These points highlight why it is difificult to value holding companies. I am no expert with holding companies. But as explained, illiquid nature of their investments and dependency on dividend income could be major issues. This doesn’t mean holding companies are bad investments as some of them have given good returns and dividends in the past. But without knowing how to value shares of a holding company its a risky proposition to invest.

Disc: Investments only in Bank shares

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