IIFL Holdings surged 14% to Rs 629 in intra-day trade on the back of heavy volumes. A combined 1.04 million shares already exchanged hands on the BSE and NSE in first 35 minutes of trade, against an average sub-one million shares being traded daily in the past two weeks.
Edelweiss Financial Services too soared 9% to Rs 201 with around a combined 3.9 million shares exchanging hands on the counter on both the exchanges.
Both the companies - IIFL Holdings and Edelweiss Financial Services - come from a capital market background, but have built new businesses of scale already.
“We see a path to improving profitability/ROE (return on equity) for both. IIFL is among the few younger lenders who has already built a retail book and is market leader in the wealth management business (30% of profit before tax or PBT). We see continued growth leading to a 36% EPS CAGR. We initiate with an Rs 650 target price,” analysts said in a report.
Edelweiss's efforts on building a retail platform in the past few years should start delivering good growth. The company is the dominant leader in distressed asset finance and is investing in an insurance venture with Tokio. We expect a 34% EPS CAGR. We initiate with an Rs 220 target price key risks include interest rates (housing finance being an area of focus) and pricing in wealth management and broking, added report.
Emkay Global Financial Services, Motilal Oswal Financial Services, JM Financial and Geojit Financial Services, which engaged in broking and non-banking financial business, were up in the range of 3% to 7% on BSE, as compared to 0.32% rise in the S&P BSE Sensex.
Meanwhile, thus far in the calendar year, the stock of brokerage firms outperformed the market by gaining up to 157% against 18% rise in the benchmark index.
Motilal Oswal Financial Services, IIFL Holdings, Geojit Financial Services and Edelweiss Financial Services have seen their market value appreciated more than 100%.
COMPANY | 31/12/2016 | PREV CLOSE | LATEST | GAIN(%)* | GAIN(%)# |
IIFL HOLDINGS | 262.39 | 550.60 | 596.00 | 8.25 | 127.1 |
GEOJIT FIN. SER. | 34.50 | 82.80 | 88.65 | 7.07 | 157.0 |
EMK.GLOBAL FIN. | 56.95 | 91.35 | 97.55 | 6.79 | 71.3 |
EDELWEISS.FIN. | 97.60 | 185.30 | 196.30 | 5.94 | 101.1 |
MOTIL.OSWAL.FIN. | 522.20 | 1102.00 | 1135.35 | 3.03 | 117.4 |
CENTRUM CAPITAL | 27.95 | 47.55 | 48.80 | 2.63 | 74.6 |
JM FINANCIAL | 66.90 | 125.10 | 128.30 | 2.56 | 91.8 |
S&P BSE Sensex | 26626.46 | 31190.56 | 31321.00 | 0.42 | 17.6 |
*Gain over previous close; # gain over 31/12/2016 |
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in