CENTRUMCAPITAL – AGM NOTE .

CENTRUMCAPITAL – AGM NOTE .

I attended the AGM yesterday, sharing my observations –

MFI -

Company will receive MFI license in a months’ time  and are planning to take over a MFI company.

As after demonetization valuation of MFI companies have come down by 1/3^Rd so it best suited for the company to buy a MFI business.

Company want to enter MFI as it will felicitate the social engagement , which in turn will make them eligible for various licenses they will apply in future, (here the hint is that 3-4 years down the line company may apply for banking license). UJJVAN and EQUITAS got banking license as they had strong presence in MFI sector.

HFC –

12 branches are operational in M.P and Gujurat and now entered Maharashtra by end Fy 18 they will have 20 branches in HFC division .

In cities like ANAND , BHARUCH , UJJAIN ,NAGDA no financial instutition is lending to NON salaried class which is huge market.

Motilal oswals HFC arms Aspire lends to NON salaried aggressively in pune and other cities that is one of the reason that they have grown very fast .

In my view in next 1 year per branch can easily disburse 80-100 crore which can take the HFC loan book to 1500 -1800 crore.

Forex -

Company is  very bullish on forex business and will continue expanding that.

Presently 23 million people are travelling and are expected to go upto 100 million in next 10 years.

SME Lending –

Huge part of MSME segment is still not financed by the banks and NBFCs, company is bullish on SME sector too .

Mr bindra said that when economy is growing by 6-7 % then the leding sector grows by 3x i.e 18-21 %

So the opportunity is huge and they plan to expand keeping risk and NPA’ in control.

Presently company have staff size of 2000 people and growing .

Mr bindra said that company is very well placed for capex for next 5 years.

PROMOTER HAVE PLANS TO HIKE STAKE IN THE COMPANY

I feel there are much better days ahead for the company and shareholders.