CLSA has initiated coverage on Muthoot Finance and Manappuram Finance Limited with an ‘outperform’ rating and a target price of Rs 1,900 and Rs 240 respectively.
Recommended Articles
View All
Withering Weather: Experts see erratic rains to spell higher food prices and tougher inflation ahead
Mar 24, 2023 IST4 Min(s) Read
Decoding Finance Bill proposals for debt funds: What remains and what changes
Mar 24, 2023 IST3 Min(s) Read
World TB Day: These key challenges could certainly fail India's TB elimination goal
Mar 24, 2023 IST6 Min(s) Read
Desk-bombing and more — why Gen Z loves going to office
Mar 23, 2023 IST4 Min(s) Read
The firm sees massive potential upside from current levels for both these stocks.
Both the companies historically have generated RoE and RoA much higher than that of banks and non-banking financial companies (NBFCs).
CLSA believes given the high profitability with low balance sheet risks, both these companies deserve a higher price to book multiple.
According to the brokerage house, both the companies have the potential of at least 10-12 percent compounded annual growth rate (CAGR) over the next five years regardless of gold prices.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
To watch other videos in this series, click on the Standout Brokerage Report tab below.
