Update on the Indian Equity Market:
\nOn Monday Nifty closed 0.8% higher at 11,503. Among the sectoral indices IT (+3.5%), Metal (+2.6%), and Pharma(+1.7%) closed higher. Fin Services (-0.2%), Media (-0.2%), and PSU Bank (-0.1%) closed lower. Bajaj Finserv (-2.79%), Shree Cement (-2.8%), and Bharti Airtel (-2.0%) closed on a negative note. TCS (+7.6%), Wipro (+7.0%), and Tata Steel (+4.9%) were among the top gainers.
\n70% rise in footfalls in Q2 – Muthoot Finance
\nExcerpts from an interview of Mr.George Alexander Muthoot, MD, Muthoot Finance with CNBC-TV18 dated 1st October 2020:
\n\u25cf\tThere is an increase in average daily footfall. The increase is by 70% as compared to Q1.
\n\u25cf\tQ2 is much better as more customers are coming to the branch as lockdown is lifted and travel is becoming possible.
\n\u25cf\tCustomer transactions are also increasing. There is a 40% increase in customer transactions.
\n\u25cf\tThere is a 10% increase in online transactions. Q1 also saw a rise in online transactions. The company did 3mn transactions in Q1.
\n\u25cf\tMuthoot Finance has started a new loan scheme with a free COVID-19 insurance policy.
\n\u25cf\tThis scheme was started late in Q2 and in the southern branches. The company offered 46k COVID-19 policies to customers free of cost.
\n\u25cf\tThe customers have a small ticket size. The average loan size is Rs 50,000.
\n\u25cf\tThe company expects Q2 to be much better as there is a new loan disbursal as well.
\n\u25cf\tThe company continues to maintain the guidance of 15% growth in the gold loans.
\n\u25cf\tOn the home loans business, he said there was no new lending in Q1 and Q2. The company will start new lending going ahead. The recovery is 85-90% in the home loan business.
\n\u25cf\tPeople who took moratorium earlier have not utilized it fully and already paid installments.
\n\u25cf\tThe customers are coming back for payments but the company will start lending in Q3 and Q4.
\n\u25cf\tOn the change in LTV for banks, he said there is always a high competition in the gold loan sector. There is no decrease in business for the company.
\nConsensus Estimate: (Source: market screener website)
\n\u25cf\tThe closing price of Muthoot Finance was \u20b9 1,164\/- as of 04-October-2020. It traded at 3.2x\/ 2.6x\/ 2.3x the consensus Book value per share estimate of \u20b9 363\/445\/510 for FY21E\/ FY22E\/ FY23E respectively.
\n\u25cf\tThe consensus average target price for Muthoot Finance is \u20b9 1,300\/- which implies a Pb multiple of 2.4 times on FY23E BVPS of \u20b9 510\/-.
\nDisclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Monday Nifty closed 0.8% higher at 11,503. Among the sectoral indices IT (+3.5%), Metal (+2.6%), and Pharma(+1.7%) closed higher. Fin Services (-0.2%), Media (-0.2%), and PSU Bank (-0.1%) closed lower. Bajaj Finserv (-2.79%), Shree Cement (-2.8%), and Bharti Airtel (-2.0%) closed on a negative note. TCS (+7.6%), Wipro […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[161,162],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1410"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1410"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1410\/revisions"}],"predecessor-version":[{"id":1411,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1410\/revisions\/1411"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}