Axis Direct bullish on Manappuram despite new RBI guideline
Axis Direct said post demonetisation, Mannapuram has adopted to non-cash disbursements and apart from a temporary disruption, it does not see much concern.
By Anandi Chandrashekhar, | Updated:
Despite the RBI's revised guidelines for NBFCs which prescribed a limit of Rs.20,000 for transactions in cash against gold compared to the earlier Rs.100,000 limit, Axis Securities is bullish on Manappuram Finance. The stock rose 2.75% on Tuesday.
The brokerage's view is that the impact on the company's business will not be as grave as is being perceived by the markets. It said "Borrowers are in need of loans, hence will be agile to adopt to cheque as means of disbursement or for even repayment of loans."
It said post demonetization, Mannapuram has adopted to non-cash disbursements and apart from a temporary disruption, it does not see much concern.
Manappuram Finance (MGFL) reported PAT growth of 101% YoY at Rs 203 cr which was led by healthy NII growth backed by strong advance growth and improvement in NIMs it said. The brokerage has a buy on the stock with a target price of Rs 100.
The brokerage's view is that the impact on the company's business will not be as grave as is being perceived by the markets. It said "Borrowers are in need of loans, hence will be agile to adopt to cheque as means of disbursement or for even repayment of loans."
It said post demonetization, Mannapuram has adopted to non-cash disbursements and apart from a temporary disruption, it does not see much concern.
Manappuram Finance (MGFL) reported PAT growth of 101% YoY at Rs 203 cr which was led by healthy NII growth backed by strong advance growth and improvement in NIMs it said. The brokerage has a buy on the stock with a target price of Rs 100.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
