Nice post Dhruva. I have a question regarding the market (credit card industry) I believe considering the lending history for farmers and the recent ECLG for Msme, which shows that we have a poor credit culture, the industry might grow but with a subsequent lower quality standard in tier 2 and tier 3 cities and a reduction in the MDR can reduce benefits which inturn can reduce credit card viability as an instrument. Also even after so much push for UPI cash levels are near ATH so a subsequent challenge is the mentality shift which would also be hard to overcome.
Hi Dhruva, A small input (might be something I am missing): Shouldn't we take a margin of safety. You calculated Rs 830 as a price after taking some assumptions. Wouldn't a good buying price be 590 after taking 30 percent MOS??
Nice Article Dhruva. Thank You
Nice post Dhruva. I have a question regarding the market (credit card industry) I believe considering the lending history for farmers and the recent ECLG for Msme, which shows that we have a poor credit culture, the industry might grow but with a subsequent lower quality standard in tier 2 and tier 3 cities and a reduction in the MDR can reduce benefits which inturn can reduce credit card viability as an instrument. Also even after so much push for UPI cash levels are near ATH so a subsequent challenge is the mentality shift which would also be hard to overcome.
Side note - Please ,Next post on reverse DCF xD.
Hi Dhruva, A small input (might be something I am missing): Shouldn't we take a margin of safety. You calculated Rs 830 as a price after taking some assumptions. Wouldn't a good buying price be 590 after taking 30 percent MOS??