Former Chairman of Housing Growth Finance Corp. Deepak Parekh and his staff have been “forward of their time”, whereas they labored on a sound enterprise mannequin with a valuation at one occasions earnings, in response to Vinod Sethi.
The previous Managing Director of Morgan Stanley recalled his early interactions with the staff at HDFC in an interview with NDTV Revenue’s Icons With Ramesh Damani present. A analysis analyst earlier had briefed Sethi concerning the financial institution. He admitted he wasn’t initially inclined to dig deeper.
Nonetheless, upon assembly them, Sethi discovered a disconnect regardless of the clear potential. The enterprise was stable however nobody may clarify why the inventory was so low cost, he stated.
“First rate guys doing an honest job, working an excellent enterprise. Nation is homeless and principally getting it (inventory) at one occasions earnings.”
“I stored asking sensible traders right here on what is the catch,” he stated. “Nobody had a solution. When one thing is supremely low cost and costly, there are 100 causes to justify it. My job is to determine the justification and the true evaluation.”
