Firmly believe that this stock might have seen its worst and has a very small probability that it will form a low below this month's low.
Fundamentally except the fear of NPA's there isn't much wrong with this stock. Has a robust pharma business which i feel is very valuable and now with the non compete removed it can grow leaps and bounds again. The promoter knows a thing or 2 about pharma having sold his last pharma venture for a massive profit.
On the financial side of the business the debt/equity is below one and all efforts are being made to reduce the cost of capital. One of the few NBFC's with enough ammo to actually inorganically grow its book its book in these markets and I'm sure Ajay Piramal will be looking at the same. The loan book might be allowed to restructure loans on a one time basis thanks to Covid which will be positive for the co too.
I would love to see this stock revisit its recent lows where I did buy a little bit (around 675 but barely 2% of my portfolio) but would like to scale it up enough coz of my belief that the promoter has always been transparent and has great pedigree to develop this company post the virus issues are out of the way.
Will surely buy more below 700 if the price does visit there once again.
Technically even after getting hammered the price did close above a key Fibo level which is also good. :-)
Fundamentally except the fear of NPA's there isn't much wrong with this stock. Has a robust pharma business which i feel is very valuable and now with the non compete removed it can grow leaps and bounds again. The promoter knows a thing or 2 about pharma having sold his last pharma venture for a massive profit.
On the financial side of the business the debt/equity is below one and all efforts are being made to reduce the cost of capital. One of the few NBFC's with enough ammo to actually inorganically grow its book its book in these markets and I'm sure Ajay Piramal will be looking at the same. The loan book might be allowed to restructure loans on a one time basis thanks to Covid which will be positive for the co too.
I would love to see this stock revisit its recent lows where I did buy a little bit (around 675 but barely 2% of my portfolio) but would like to scale it up enough coz of my belief that the promoter has always been transparent and has great pedigree to develop this company post the virus issues are out of the way.
Will surely buy more below 700 if the price does visit there once again.
Technically even after getting hammered the price did close above a key Fibo level which is also good. :-)