tag:blogger.com,1999:blog-7421691803981499950.post2634364133162270585..comments2023-10-10T22:05:37.526+05:30Comments on PseudoSocial - Biased Perspectives and Value Investing experiments on Indian Stock Markets: Can Fin Homes Ltd.SGhttp://www.blogger.com/profile/18196269131670884138noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7421691803981499950.post-74468123627552445252007-04-10T07:06:00.000+05:302007-04-10T07:06:00.000+05:30Interesting find !! But just being a devil's advoc...Interesting find !! But just being a devil's advocate here, the debt on the company is huge with a LT Debt/Equity ratio at around whopping 9.something.. Now you might argue that for financials that earn money purely from interest arbitrage debt on balance sheet is common and that is precisely my point. Interest rate increase will only hurt companies involved in such business as not only the lending rate but the borrowing rate also goes up. And they might not be able to pass on the entire hike to the customers just to maintain growth thereby squizing margins. The other thing to look at is NPAs which is not a big concern at under 1% for this company but for others such as IFCI its a big issue!! I will still consider it cheap though but in the high interest regime i would stay clear of such stocks.Anonymousnoreply@blogger.com