👉The company's Q2FY23 performance has reaffirmed that they have turned even mightier after the pandemic.
👉Over the past 15 years, it has grown its loan book at a compounded annual growth rate (CAGR) of 37% and profit at a CAGR of 51%, with an average ROE of 17%.
(2/4)
👉They have shown improvement across loan growth, profitability and asset quality.
👉Robust growth in assets, better asset quality and fall in provisions/credit costs underlined performance even as operating expenses increased during the quarter.
👉CLSA has flagged mean reversion as a derating risk for Indian equities.
👉A record valuation premium in equities as well as domestic bonds indicates low margin of safety.
👉A simple valuation mean reversion anchored on bond yields indicates fear of 30% in Nifty.
(2/4)
👉About individual stocks in NSE500, 55% have current TTM PE higher than 5 year avg.
👉At high volatility & stretched valuations, PEG ratio can do good in quality stock selection as high PE stock can be a good bet if it is expected to report strong earnings growth.
🔸News headlines are rarely helpful for investors. Most are just junk flowing through. Even today, there is no shortage of headlines which are just up-to-date version of the past headlines.
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🔹Most investors do badly because they pay too much attention to the news & react too much to the events.
🔸So now the question comes, what news should one react to for making investment decisions? What news might affect stock markets?
👉Indian tech IPOs are finding the going hard due to depressed valuations & a more conservative approach from the market regulator.
👉Droom technology is the latest IT company to withdraw its IPO of around Rs 30 billion preferring to raise money in private market.
(2/5)
👉The online loss making automobile marketplace had filed Prospectus in Nov 2021 & withdrew last week.
👉Droom is not the 1st to shelve IPO this year. In August, online healthcare platform API Holdings cancelled Rs 62.5 billion IPO citing tough market conditions.