Today SE INVESTMENTS management came on CNBC. Udayan stating SKS microfinance not the only stock in microfinance sector but even SE INVESTMENTS in microfinancing.(By the way even ARMAN FINANCIAL SERVICES is a NBFC into microfinancing).
Boss, anyone can come on CNBC and have UM ask you about their company. (For a fee of course) Even me.
Joined: 17/Mar/2008
Location: India
Online Status: Offline
Posts: 1882
Posted: 31/Jul/2010 at 11:54pm
- CONCEPT stock - Blue chip investors - Sequoia the main PE investor also invested early in Google,Cisco,Apple - India biggest market for microfinance - Huge reach & impact on bottom of Pyramid - Tremendous QIB response - Huge growth staring in your face - Negligible NPAs - Fulbright scholar is the main promoter - Think 2 year ahead & calculate the EPS - 50 rs additional discount for retail investors
Amongst the Micro finance institutes I am sure scams are going on...the 99.99 or so % of repayment might all be a chimera...since there is no real oversight once would have to accept the management numbers about NPAs
My Aiyar is now talking about allowing these institutes to start accpeting deposits as well......
Some important points to note
-Operating cost is high at 8-10% as Microfinance is effort intensive
-Cost of funds is 8-10%
-Many promoters are seeing this as an exit
-The loans are at an average rate of 20-30%.
So if the poor have a cost of capital of 30%, do their businesses earn return on capital greater than 30% because only then they get richer i.e. return on capital is greater than cost of capital then we get richer.
Something to think about
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