Results have been good for L&T Finance, ILF&S threat is also removed with their exposure marked Green. DHFL exposure is provisioned for. Agree growth is impacted.
Still sharp correction from around 150 levels just before quarter results to almost 90 levels few days back.
What is market waiting for or what was it expecting before result for it to rule at 150 then?
Is it the slowdown in growth that bothered or provisioning for DHFL or expectations of more bad assets or inability to raise funds (which so far is not the case) or something else?
Do we consider it as a troubled NBFC? Is it Amber, Green or Red NBFC in today’s situation? According to me it seems to be weathering the storm well, raising funds is not an issue, slowdown in growth seems a conscious decision and not lack of funds, Management is spot on on their decisions so far - They did finally got ILFS green, they were confident enough since beginning that it will be green. Is the street bothered that although green, the money would not come back?
I am trying to understand reasons for its sharp fall from before results level
Disc: Invested and discussing only for learning fundamentals purpose