 "Muthoot Finance extends gain post Q4 results")
Muthoot Finance has moved higher by 6% to Rs 270 on the BSE, extending its 18% rally in past one week, after the company reported strong 61% year on year jump in net profit at Rs 265 crore for the quarter ended March 2016 (Q4FY16), on back of healthy operational income.
Total income from operations rose 32% to Rs 1,451 crore against Rs 1,102 crore in the corresponding quarter of previous fiscal.
The company announces its entry into microfinance business by acquiring stake in Chennai based microfinance firm Belstar Investment and Finance Private Limited.
The strong performance was led by intense recoveries efforts, which was further aided by higher gold prices, thus helping Muthoot Finance with recoveries of Rs 150 crore
“Muthoot Finance is the largest organized player in the gold loan financing sector. With the regulatory environment turning favorable and a turnaround in the economy, we expect the company’s growth to resume and its AUM to grow at +17% CAGR over the next 2-3 years,” Motilal Oswal Securities said in a report.
At 03:05 PM, the stock was up 5% at Rs 266 on the BSE as compared to 0.32% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled and a combined 1.48 million shares changed hands on the BSE and NSE.
Total income from operations rose 32% to Rs 1,451 crore against Rs 1,102 crore in the corresponding quarter of previous fiscal.
The company announces its entry into microfinance business by acquiring stake in Chennai based microfinance firm Belstar Investment and Finance Private Limited.
The strong performance was led by intense recoveries efforts, which was further aided by higher gold prices, thus helping Muthoot Finance with recoveries of Rs 150 crore
“Muthoot Finance is the largest organized player in the gold loan financing sector. With the regulatory environment turning favorable and a turnaround in the economy, we expect the company’s growth to resume and its AUM to grow at +17% CAGR over the next 2-3 years,” Motilal Oswal Securities said in a report.
At 03:05 PM, the stock was up 5% at Rs 266 on the BSE as compared to 0.32% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled and a combined 1.48 million shares changed hands on the BSE and NSE.