Joined: 01/Jan/2006
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Posted: 08/Jun/2007 at 9:37pm
They are not new positions as reported on MC. Still this company is good as you indicated from that valuation exercise.
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Posted: 06/Sep/2007 at 10:55am
Kotak Bank has grown at 60% CAGR for the past 4 years while the entire range of businesses is highly scalable I feel that this growth could dlacken downa bit to a more conservative 40% level.
Take a look at the company's latest quarterly results at:
Brokerage income which contributed more then 60% to the total profits in FY07Q1 contributed around 37% to the total profits in Fy08Q1. The reasons for this drop in contribution has been because:
1) The brokerage division actually showed a drop in profitability
2) Maybe the spate of aggressive marketing by Reliance Money has affected the profitability of this division.
Though Kotak Bank is a robust business model led by an able mangement
the slackening growth in the brokerage division could bring down the overall growth of the company to around 40%.
We need to watch the results fo a couple of quarters though.Meanwhile Kotak bank remains a classic play on the Indian financial sector which growing at more then 40%.
Edited by basant - 06/Sep/2007 at 10:58am
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
It seems to me ARC is a great business with every other player jumping in the business. Arcil, where ICICI,SBI,IDBI holds 24.5% stake each dominates the space currently. Rel Cap which holds 49% in its proposed ARC along with Soros and Blue Ridge. ARCs buy out the NPA's of bank and then turn them around. ARCs is a Rs 2,00,000 crores market. StanChart, JM Financial are other players who have apllied for license for venturing into the same. My question how should we value ARC's?....P/BV???
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
Joined: 29/Mar/2007
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Posted: 12/Sep/2007 at 12:29pm
Kotak Bank has grown at 60% CAGR for the past 4 years while the entire range of businesses is highly scalable I feel that this growth could dlacken downa bit to a more conservative 40% level.
Is it fair to look at Kotak Bank only on EPS/earnings growth basis? Unlike HDFC Bank, Kotak has a fast growing insurance business that doesn't contribute to earnings yet.
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Posted: 12/Sep/2007 at 12:46pm
Yes, I had that in mind but after the Bajaj fiasco I have become very apprehensive about the insurance business - while the busienss should do exceedingly well we are not sure which of these would have issed call options to the foreign partners.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
Can anyone compare the insurance business of Rel Cap v/s Kotak ???
"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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Posted: 12/Sep/2007 at 12:55pm
RCap is ahead because ina few quarters their new business is as good as Kotak but Rcap selss mostly ULIPs also the advantage is that they are 100% owed so no problem on calls etc but the biggest problem is risk management that we can know only after a few years or after looking at the pedigree of the guys managing the business. In US insurance companies went down 90% because they were aggressive in writing policies.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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