Dont buy Alli finance.
Next quarter big down in profit(Gold loan)
Specially for ALLI.
Someone is try to sell.
this is the time to exit
If you know can you please give more details about this gold loan, This is the only negative thing i was heard about company.
Just to set the record straight and with no intention of promoting, scaring, recommending to buy or sell any of the following securities -
1. As at 31st March 2012, ALLI has a gold exposure of 10 % of their total Assets.i.e. Rs 1.3 out of Rs 1.5 Billion classified under "other loans and advances"
2. As at 31st March 2013, ALLI has approx maybe maximum Rs 2.5 Billion (cannot tell exactly without a note) which amounts to approx 14 % of their Total Assets.
3. On 9th April at the height of the Gold Plunge, The MD bought over 10,000 shares of ALLI at over Rs 800.
4. Harry82 now is cautioning us on the gold issue for ALLI. If you read his past posts, his foremost recommendations recently have been on Sampath, LB Finance & Vone.
5. Sampath has over 25 % of its loan book exposed to Gold. Rs 50 Bill out of their loan portfolio of Rs 200 Billion and Assets of Rs 330 Billion on Gold.
Yet on 28th May 2013, he recommended Sampath Bank as one of his top picks, perhaps forgetting the "Gold" issue
6. LB Finance, who up to last year showed Gold Loans seperately in their Balance Sheet, have now merged with another category and may have upto a Rs 12 Billion exposure out of Rs 52 Billion Assets. still on 3rd May, he says " Now LFIN FD rates are near bank FD rates. Then they have good profit ( gold loss is a little part of massive profit)"
7. So I'm wondering if Gold is such a big issue for ALLI whose exposure is max 14 % (maybe lower), how come its not for Sampath (25 %), LB Finance (24 %) ?