India's top gold financiers rise after Jefferies starts with 'buy'

IIFL Finance

18/07/2024 07:40

** Shares of Manappuram Finance Ltd  MNFL.NS  and India's
biggest gold financier Muthoot Finance Ltd  MUTT.NS  rise as
much as 3.3% and 2.8%, respectively
    ** Jefferies initiates both gold financiers with "buy", sees
them reporting higher loan growth that would outperform other
non-bank lenders
    ** Brokerage highlights gold loan firms' low risks to asset
quality and high returns while also flagging MNFL and MUTT's
cheap valuations
    ** However, Jefferies sees competition increasing once ban
on IIFL Finance  IIFL.NS  issuing gold loans is lifted by RBI
    ** Analysts tracking MNFL rate it "strong buy" on avg, with
Jefferies' 270 rupees PT a Street-high
    ** MUTT is rated "buy" on avg, and Jefferies' 2,220 rupees
PT is second highest on Street
    ** MNFL and MUTT extend YTD gains to 33% and ~26%,
respectively vs IIFL's 16.6% fall


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))