While the performance of Muthoot has been subdued and Manappuram disappointing, we have reasons to believe that Muthoot being primarily gold financing entity, should reap the benefits of rising gold prices and rural recovery
Representative Image
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
In the past four months, gold prices have rallied by close to 10 percent, but defying conventional wisdom, gold financing NBFCs like Muthoot Finance (CMP: Rs 1,292 Market Cap: Rs 51,841 crore) and Manappuram Finance (CMP: Rs 114 Market Cap: Rs 9,691 crore) have corrected in this period and have underperformed the benchmark Nifty by a wide margin. Are the markets missing something or they are justified in punishing the gold financing NBFCs given their chequered show in recent…
