Wanted to share one hypothesis:
Best value creators have either being consumer facing companies, or lending businesses. Good example from the past is Bajaj finance, a consumer facing lender. It was appreciated by 30x in 6years.
That is the primary reason why I have invested 36% of my portfolio in Ugro Capital and Muthoot finance, Unfortunately, both of them are not performing for long time now. I still believe in my hypothesis, just waiting for the rate cycle to take downturn, hopefully 2-3 rate cuts this years may re-rate the these companies.
Question: Do you think rate cuts this years will re-rate the financial sector?
Refer: Muthoot Microfin Limited is it next JP Morgan? - #21 by dpk1994