The Ledger, every show

“In many public sector banks, the KYC situation is so bad. That if they went down the same route, they would have to shut down the public sector bank tomorrow.”

“See Tata is a PSU. By, for the most part.”

“So you should actually be falling 30, 40, 50% just to come to an equalization in terms of your normalized long-term growth plus your high ROC.”

“Large caps are not less risky than small caps.”

“I think the action needs to be justifiable justifiably malicious or provably malicious.”

“So, but there Kotak displayed a point where he said the first time a regulated entity went to court and won.”

“Jab yes bank mein trouble hoa, then 80 bonds were written down to zero. To na apko interest milla na principle.”

“As a shareholder of a bank, I will say that banks should always take equity in case they may forgive. Even one rupee of a loan. If I forgive one rupee, I should have equity against it.”

“The issue now has become that the banking system has started to go back. So you should be careful that public sector banks, which we are talking about, that it's good, good, good. One situation which had made them better, the signs of it becoming worse are bac…”

“Today, for instance, I think MNC valuations are unjustifiably high. I think you should not pay 80 times earnings for Nestle. You just shouldn't. It's a company that will grow at max five or six percent.”

“In the year of the year, the companies, the market cap, two 51 to 500, versus the multiple today, is the same. Matlab, their valuations have gone up three X. Their earnings have gone up three X. That means from 2019 to now, which is roughly five years, three a…”

“Simplifying Rakhe Junjanwala into one Titan is probably one of the mistakes of our generation.”

“In 2006, if you believe it, as a percentage of GDP, more stocks were traded in 2007 than they are now.”

“The real thing that changed for India and not just trading pretty much everything was one company. And while I own it, it's Reliance Jio. They brought cheap and very, very quick, big bandwidth to India at a relatively easy availability and easy low price.”

“If you have 50% investment from a company, then that company becomes your exit. Unless that company is an investment company.”

“So in a private market transaction, you may not look at the things in the same angle. You don't look at conflict of interest in the same way public markets do”

“This ULIPs and all that shit, the stuff that is toxic and sold by old people, that should require a jail term. Because now you are acting maliciously. You are making a commission for your commission and that is a bad thing.”

“Public market valuations will always be lower just to compensate for that effect unless your company is so good that they are saying ki, you know, I love it.”

“My funda is, in fact, a VC should go and tell companies, please list on the SMA exchange. I will buy your shares on the SMA exchange. After that, if there is no liquidity, it will come one day. Your e-shops, your employees can sell on the, this thing exchange.”

“And I think also that their actions are a little too strong and harsh because they generally give time.”

“One day, the regulators will go after the wrong person, and the wrong person means they're After an honest person. And that honest person will say, we have remedies.”

“And the reason for NBFCs to exist has always been regulatory arbitrage.”

“Banks are no longer the indicators of the economy in India, as far as I know.”

“Power Finance Corporation, again, we own some of that. So, that is, was trading at two times earnings. Now, it is trading at eight times earnings. No, four. Forex. So, two has become eight. But, it is not necessarily overvalued even now.”

“Tata thinks in terms of decades. So you should also expect change will happen in decades.”

“This multiple of earnings is not even an indicator of overvaluation.”

“There's always going to be some fraud because they're overvalued right now. Some of them are. I don't know about all of them, but microcaps do have a lot of fraud.”

“I tell people that undervalue your stock at IPO. What does it matter? You will lose a little bit. And over time, you don't want to sell only once. You will sell in the IPO. You will sell the rest of what you sell after. So, when you sell, you will get better v…”

“Vodafone is probably because Vodafone is technically bankrupt right now. Its equity is negative.”

“In DHFL, it was written in the resolution plan. This share is going to become zero. We wrote a post that this share is going to be zero. Please don't take it. It was in the upper circuit for four days.”

“Buying only of large caps sounds to me like a recipe for mediocre returns.”

“Earlier, if you failed as an entrepreneur, nobody will do your job. Now if you fail as an entrepreneur, you're more likely to get a better job than otherwise.”

“India has the cheapest stock trading in the world, and the cheapest payments systems in the world.”

“NSE decided to take Omnisis and make it free for all brokers. So for the first four years, Zerodha did not need to build front-end software at all, because they got it free from the exchange, not four years, maybe three years.”

“What happens is then VCs also will prefer to merge their companies rather than sell at a distressed valuation.”

“I'll buy a house for my own living. But that's like buying a car. It has nothing to do with investment. But you ask me to invest in real estate, I won't. So I won't buy a house to rent it out and all that stuff.”

“Sanjeev Bhikchandani also has now what is called effectively permanent capital. Because he has the ability to say, I will raise money as an awkri and give you shares. Of Naukri. I will take that money and do something with it. If you don't like what I do with …”

“Geofinancials is a de-merger from Reliance Industries. Reliance Industries is 10% of India's index. Index funds that hold Reliance Industries got free shares of Geofinancials. Geofinancials will not be in the index. So all these index funds have to sell. The i…”

“It doesn't mean you have to start at 25 or 30 or 35. It's just easier if you start earlier, but even if you're 40, you can start, and you can build yourself that wealth, but delaying that gratification forever is not a, is not any sort of gratification forever…”

“So a lot of people have these EMIs, which don't allow them to save. So they keep using those EMIs to buy their house or whatever. And then the house is not really a saving for a long term. You're going to all have that house and that's going to be a house you'…”

“If there was a 30% correction in the market, none of those ads would be visible. Because none of them will be able to raise capital and these kids, these people will go back down.”

“Almost all IPOs come to you when the books have been dressed up already. So the past is not very relevant to it.”

“Indian economy, the bank is a relatively smaller portion of the overall scheme of things. There may be, 12% at max. And this is banks plus NBFCs put together. It's about 12% of economy. But the index is overrepresented.”

“So, the more the fee income, more foreign investors love the stock. It's not worth interest rates. He will earn his money.”

“Business cycles in India last between three and five years. So you have to give at least a fund manager a business cycle to perform.”

“We will need to raise some money soon because we are applying to be a mutual fund. And the requirements have just gone up from 50 crores to one 50. So we would have met the 50 crore limit, but we won't meet the one 50. So we'll have to raise external capital”

“The options industry today is at least 500 times what it was in 2006, undoubtedly.”

“Apollo Tires wanted to buy a company called Cooper Tires in 2015. Cooper Tires biggest plant was in China. They said, you brought Indian. Of course, not in Hindi, but if you bring an Indian, I will not let you enter my factory. They refuse to enter, allow Coop…”