IIM-Ahmedabad Pitches Microlender CreditAccess Grameen As Winning Stock Idea
Before pitching a microlender as their stock pick, a group of undergrads met borrowers and the management to understand disbursement, repayment structure, risks and growth plans.
The pitch, backed by on-ground research, helped the students of Indian Institute of Management, Ahmedabad win Motilal Oswal’s ‘Think Equity, Think Q.G.L.P’ competition for the second straight year.
The team picked CreditAccess Grameen Ltd. as it meets Motilal Asset Management Company’s ‘Quality, Growth, Longevity, Price’ parameters. The microfinance lender, which has a market capitalisation of less than Rs 10,000 crore, was listed in August last year. The stock trades nearly 60 percent higher than its issue price.
The asset manager invited 55 management institutes to participate in the contest. Ten finalists presented their stock ideas to the jury that included Raamdeo Agrawal, co-founder, Motilal Oswal Financial Services Ltd., R Srinivasan, head of equity at SBI Mutual Fund, and Pankaj Tibrewal, equity portfolio manager-senior vice president at Kotak Mutual Fund.
National Institute of Bank Management, Pune won the second spot with its pitch for L&T Technology Services Ltd., while Institute of Management Technology, Ghaziabad received the bronze for its presentation on Dr Lal PathLabs Ltd.
Watch | B-School Students Pitch Stock Ideas...