Buy Manappuram with a target of Rs 39: Sharmila Joshi, sharmilajoshi.com

In a chat with ET Now, Sharmila Joshi, sharmilajoshi.com, shares her wealth creating ideas

ET Now: You also like Manappuram, what is the rationale behind that?

Sharmila Joshi: This is a space that I have been talking about and liking for a long period of time. The NBFC or stocks within this sector, lending whether it is gold loans or that kind of space, microfinance, which I have liked for the longest time. For Mannapuram, we have seen in this quarter a good set of numbers. They have managed to expand their AUMs and also we are seeing that they are increasingly getting into gold loans etc which are beginning to show a payoff and are beginning to reflect in the numbers because the profitability too grew by 20 per cent over last year. I think, in a fairly challenging environment, these are the companies that are delivering fairly decent numbers and as we see really the cost of funds coming down, you will probably see better numbers from a lot of these companies. So here my longer term target would be Rs 39.