 "Muthoot Finance, Manappuram Finance hit record high")
Shares of gold financing companies Muthoot Finance and Manappuram Finance have hit their respective record highs on the bourses in an otherwise range-bound market.
Muthoot Finance surged 15% to Rs 405 on the BSE in intra-day trade after the company said it is confident that the Income Tax Department would have found that the company maintains it account books satisfactorily.
The company made a clarification on media reports the Income Tax department has conducted raids in the premises of Kerala-based financial institutions under the Muthoot banner, across the country. LINK
In a statement filed on the exchanges, the company said the Income Tax Department carried out a search at various company offices between August 5 and August 7. We are not expecting any material adverse finding against the company by Income Tax Department.
In past eight trading sessions, the stock rallied 31% from Rs 309 on July 27, after the company reported 48% increase in net profit at Rs 270 crore for the quarter ended June 2016 (Q1FY17) compared with Rs 183 crore in the same quarter last year.
Manappuram Finance has touched soared 6% to Rs 91.40 ahead of its board meeting on Tuesday, August 09, 2016, to consider the un-audited financial results of the company for the quarter ended June 30, 2016 (Q1).
Edelweiss Securities expect Manappuram Finance to report more than double net profit of Rs 135 crore for Q1FY17. The company had profit of Rs 59 crore in June 2015 quarter.
“Significant efforts put in at a branch level to push volumes which coupled with rise in gold prices will lead to gained traction in disbursement growth; lower auctions & under recoveries will also boost interest income,” the brokerage house said in a results preview.
“Given the surge in gold prices in Q4FY16, we expect 3% to 5% assets under management (AUM) growth on a sequential basis for Manappuram and Muthoot Finance respectively. Margins are expected to remain strong given that legacy portfolio for both have run down,” Antique Stock Broking said in a report.
Muthoot Finance surged 15% to Rs 405 on the BSE in intra-day trade after the company said it is confident that the Income Tax Department would have found that the company maintains it account books satisfactorily.
The company made a clarification on media reports the Income Tax department has conducted raids in the premises of Kerala-based financial institutions under the Muthoot banner, across the country. LINK
In a statement filed on the exchanges, the company said the Income Tax Department carried out a search at various company offices between August 5 and August 7. We are not expecting any material adverse finding against the company by Income Tax Department.
In past eight trading sessions, the stock rallied 31% from Rs 309 on July 27, after the company reported 48% increase in net profit at Rs 270 crore for the quarter ended June 2016 (Q1FY17) compared with Rs 183 crore in the same quarter last year.
Manappuram Finance has touched soared 6% to Rs 91.40 ahead of its board meeting on Tuesday, August 09, 2016, to consider the un-audited financial results of the company for the quarter ended June 30, 2016 (Q1).
Edelweiss Securities expect Manappuram Finance to report more than double net profit of Rs 135 crore for Q1FY17. The company had profit of Rs 59 crore in June 2015 quarter.
“Significant efforts put in at a branch level to push volumes which coupled with rise in gold prices will lead to gained traction in disbursement growth; lower auctions & under recoveries will also boost interest income,” the brokerage house said in a results preview.
“Given the surge in gold prices in Q4FY16, we expect 3% to 5% assets under management (AUM) growth on a sequential basis for Manappuram and Muthoot Finance respectively. Margins are expected to remain strong given that legacy portfolio for both have run down,” Antique Stock Broking said in a report.
