Saturday, 23 Jun 2018

Put your faith in trustworthy management

One of the most important aspects of stock analysis is to understand the company and its management. Management teams are responsible for making strategic decisions that impact the value of their companies over time. That’s why it’s important to find companies with strong leadership teams. As you do your research into who’s running the companies you should check for the manager’s track record, experience, and if he/she has any specific talents. You might also find yourself drawn to managers with certain characteristics.

RBL Bank Ltd. is the best example of a successful business story under great leadership. After 2010, the company witnessed growth in topline and bottomline as well under the new leadership of Vishwavir Ahuja. Vishwavir Ahuja is a successful banker with rich experience in banking and has earlier headed Bank of America’s India operation. In last seven years, he has built a strong team with rich banking experience. During this period, net profit of the bank has risen to Rs 446 cr in FY17 from Rs 12 cr in FY11 with the growth rate of ~70% vs de-growth rate of ~27% over FY06-11

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