Manappuram, Muthoot Finance: If one goes by what Nirmal Bang Institutional Equities suggest, the two gold loan companies are likely to benefit in terms of growth and profitability, considering their leadership position in the industry.
Total income during the third quarter of the ongoing fiscal rose to Rs 3,843 crore, as against Rs 3,030 crore in the same period of 2020-21, Muthoot Finance said in a regulatory filing.
Stocks that were in focus included names like Muthoot Finance, which fell 3.24%, RVNL, which declined 2.74%, and Cartrade Tech, which rose 20% on Friday.
The company achieved its highest growth in the first half of FY24 in both loan and gold assets. The loan assets grew 21% YoY or Rs 11,771 crore while the lender s gold loan assets increased by Rs 11,016 crore or 20% over the year-ago period.
The Q1 earnings season has been a mixed bag, select stocks from different sectors have seen an improvement in their analyst scores. However because valuations are at elevated levels, it is important to be selective before being bullish when looking at stocks. The selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.