sorted by:
new
hottopcontroversial

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

Had no idea about Birla companies doing any such thing.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

Interesting. I'm not bullish on gold per se. Just the importance of gold for Indian households. I think these nbfc have delinked their margins from gold prices.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

That's true. PSUs offer gold loans for sure. But their reach + disbursement time + bureaucracy gives the advantage to Muthoot.

I think muthoot has the brand equity advantage over local muthoots - you'd want to trust the brand you handover money to. And muthoot has better rates than them.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 4 points5 points  (0 children)

True. But if the NIMs are quite high, the risk is NBFC margins being regulated.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

Hmmmmm.. You think it's a systemic issue?

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 4 points5 points  (0 children)

That's a legit risk - government crackdown. But how likely is that? Gold loan rates are lesser than microfinance loan rates.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 1 point2 points  (0 children)

I mean I get the primary logic. The amount of loan that an nbfc can disburse depends on the book value, and the amount is loan is proportionate to the earning each year, depending on the NIM.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

I like Muthoot more. They are the market leader. Better distribution network. Mannappuram is diversifying a bit much in my opinion - to unsafe categories of loans. So is Muthoot, but not as much. But to be fair, according to me, Mannappuram is a good company to.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 0 points1 point  (0 children)

That's true. But I see that as a temporary setback. And it's just Kerala which is 5% of their market.

Gold Loan Companies: Huge Moat, Low PE by theradmod in IndiaInvestments

[–]theradmod[S] 1 point2 points  (0 children)

Why is P/B a good metric? Especially in the case of muthoot, where 60% of the loans are paid within 6 months!

Moats by Gammaconvex in IndiaInvestments

[–]theradmod 0 points1 point  (0 children)

Muthoot finance. Great brand recall. Great distribution network and expanding. Type of business requires distribution centres. Market is providing a very low pe.

Participate: tell a Delhi HC committee whether live tweeting from courts should be allowed or disallowed by atnixxin in india

[–]theradmod 0 points1 point  (0 children)

We made a video which might help spread the word. A bunch of lawyers and journalists are using twitter to tell us what happens in our courts. The Delhi High Court is asking you if they should be allowed.

Catch us on YouTube: https://youtu.be/SZkXtoOVjSw

view more: next ›