Major Non-Banking Finance Corporations engaged in the business of “Gold Loans” saw major movements in Tuesday’s trading session post a recent press release from the Reserve Bank of India as of 4th March 2024.
The Central Bank has directed IIFL Finance Limited, an India-based NBFC engaged in the business of mortgages as well as loans along with its subsidiaries, to cease and desist from sanctioning or disbursing “Gold Loans” or selling any of its gold loans with immediate effect.
As a result of the above, the shares of IIFL Finance Limited are locked in the 20 percent lower circuit today at Rs 478.50 a share.
The shares of peer companies in the same industry, viz, Muthoot Finance Limited and Manappuram Finance Limited, were on the rise during the trading session on Tuesday. The soaring prices are supported by the likely gain of market share, especially in the gold loan portfolio until the ban is lifted.
Listed below are two prime competitors in focus gaining up to 11 percent in Tuesday’s trading session post the RBI directions on IIFL Finance’s gold loan business:
Manappuram Finance Limited
With a market capitalization of Rs 16,149.97 crores, the stocks of Manappuram Finance Limited started their trading session on Tuesday at Rs 186.25 and currently trade at Rs 190.80.
The company’s scrip witnessed an intra-day high of Rs 199 indicating a jump of approximately 8.30 percent as compared to the previous closing levels of Rs 183.90 apiece.
During the recent financial quarters, the company’s basic business indicators, viz, operating revenues as well as after-tax profit numbers, were on the rise with the former increasing from Rs 2,157 crores during Q2FY24 to Rs 2,305 crores during Q3FY24 and the latter, keeping the timeframe the same, took a shift marginally from Rs 561 crores to Rs 575 crores.
Muthoot Finance Limited
With a market capitalization of Rs 55,923.24 crores, the stocks of Muthoot Finance Limited started their trading session on Tuesday at Rs 1,370.25 and currently trade at Rs 1,393.
The company’s scrip witnessed an intra-day high of Rs 1,479.40 indicating a jump of approximately 11 percent as compared to the previous closing levels of Rs 1,337.30 apiece.
During the recent financial quarters, the company’s basic business indicators, viz, operating revenues as well as after-tax profit numbers, were on the rise with the former increasing from Rs 3,060 crores during Q2FY24 to Rs 3,168 crores during Q3FY24 and the latter, keeping the timeframe the same, took a shift from Rs 991 crores to Rs 1,027 crores.
Written by Amit Madnani
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