Muthoot Finance rose 3.02% to Rs 179.15 at 14:08 IST on BSE, extending yesterday's 6.39% rise triggered by a domestic brokerage reportedly initiating coverage on the stock with a 'buy' rating.
Meanwhile, the BSE Sensex was down 228.60 points, or 0.85%, to 26,807.25.
On BSE, so far 1.08 lakh shares were traded in the counter, compared with an average volume of 19,955 shares in the past one quarter.
The stock hit a high of Rs 183.30 and a low of Rs 171.20 so far during the day. The stock hit a record high of Rs 253.50 on 28 February 2015. The stock hit a 52-week low of Rs 152 on 23 September 2015.
Shares of Muthoot Finance rose 6.39% to Rs 173.90 yesterday, 7 October 2015. The stock has risen 9.61% in two trading sessions from Rs 163.45 on Tuesday, 6 October 2015.
The stock had underperformed the market over the past one month till 7 October 2015, rising 6.20% compared with 8.60% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 16.81% as against Sensex's 4.03% decline.
Also Read
The mid-cap company has an equity capital of Rs 398.04 crore. Face value per share is Rs 10.
Muthoot Finance is the prominent gold financing company in India. The brokerage reportedly said that it expects 17% compounded annual growth rate (CAGR) loan growth for the company over the next three years. Also, given that 80% of Muthoot's operating costs are fixed in nature, a rebound in business will lead to optimum utilisation of the existing infrastructure. Its return of equity (RoE) bottomed out at 14.3% in the financial year ended March 2015 from the peak of 51% in the financial year ended March 2011. The brokerage reportedly expects a gradual improvement from here on. A revival in business and improving return ratios make current valuation attractive for investors, it reportedly said.
Muthoot Finance's net profit rose 1.7% to Rs 183.16 crore on 4.6% growth in total income to Rs 1142.62 crore in Q1 June 2015 over Q1 June 2014.
Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company provides personal loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.
Powered by Capital Market - Live News