well said Chinwi. Moreover, BLI which is mainly exposed to microfinancing may have a greater risk of defaults due to natural disasters. Their clientele comprise of farmers and household entrepreneurs who are vulnerable in high proportions.@Chinwi wrote:@fireshelter wrote:Wait & See coming Days and With result what going to happen
Anybody can guess what they are upto.
If BLI report Rs. 10 EPS for this qtr
they will show 10 x 4 x 10PER = 400/- value for the share and try to take it over 200.
But this valuation is completely wrong.
We have to consider the asset value of a share. If they get 10/- EPS and with a dividend, book value will be 25-28 Rupees.
Other thing with the finance companies, their assets are with debtors. There is a considerable risk of defaulting if economy fell and/or natural calamities such as drought / heavy floods etc.
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