see the growth guys i am from jaipur this company is providing housing loan to the weaker section of society . As far as valuation is concerend surely it is on higher side but same question have been raised for bandhan bank and Au bank now see where they are trading right now
Hi Everyone I am not a stock market expert but still some fundamental details from DRHP. 1. FY 2017-18 EPS is 15.21 making P/E to 53.97 (Upper End of price Band). Highest among peers 2. Book Value is INR 157.03 making P/BV to 5.23 (Highest among peers except GRUH ) 3. Return on Networth (RoNW) for FY 17-18 is 8.46% (Lowest among peers). Fully streched and Frothy valuations. Big Avoidddd--------
The record for an IPO was for that of Religare Enterprises Rs 140 Cr issue, which was subscribed 160 times in Nov'2007. The second record for an IPO was Jan'2008 — the peak of the previous bull run — when Future Capital received bids for 132 times in IPO
Sudden Crash from 160 lvls to 120 What to do? HFCs company are less risky business. Being highly valued at 821/- . Difficult for it to justify such premium. Promoters are asking hefty premium. Company is in geographical presence. Kostak players are still getting 550/- which is safe good return. I can't see it trading at such premium. I would love Gruh Bandhan and Hdfc which are trading at lower books and higher brand visibility.
Also PE backed firms are partially exiting at 821 Which makes 4X in 2 years. Hence share should have come at 550-600 levels for safe retailers. PE is been given a exit at high premium. Giving them maximum Benefits