Gold Loans - Valuations Turn Attractive For Both Muthoot, Manappuram Finance: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Stable yields and assets under management growth have incrementally put the gold loan business on a much better footing. This will potentially bolster support from higher gold prices and weaker growth in unsecured loan segment. Non-gold businesses have also performed well for gold non-banking financial companies, which essentially opens up structural growth opportunities beyond gold for these players. We recommend 'Buy' (unchanged) on Manappuram with a revised target price of Rs 220 (prior: Rs 190), and 'Buy' (upgrade from Add) on Muthoot with an unchanged target price of Rs 1,605. We see possible resurfacing of competitive intensity pressuring growth or net interest margins as a key risk in gold while worsening asset quality is the risk in non-gold segment. In this report, we also lay out the detailed commentaries from lenders on gold loans, and the historical correlation between gold AUM and price for Muthoot Finance Ltd./Manappuram Finance Ltd..Click on the attachment to read the full report:.KSB - Delivering On Its Promises: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gold Loans - Valuations Turn Attractive For Both Muthoot, Manappuram Finance: ICICI Securities

Broadly stable yields could be expected to continue in near term

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