MOSL: Morning India (9/November/21): 1. Muthoot Finance (Healthy Gold loan growth; gold auctions still minuscule); 2. Britannia Inds.; 3. P&G Hygiene and Healthcare; 4. Aurobindo Pharma; 5. Aditya Birla Fashion
MOrning India (9/November/21): 1. Muthoot Finance (Healthy Gold loan growth; gold auctions still minuscule); 2. Britannia Inds.; 3. P&G Hygiene and Healthcare; 4. Aurobindo Pharma; 5. Aditya Birla Fashion; 6. Sun TV Network; 7. V-Mart Retail
Today’s top research idea
Muthoot Finance: Healthy Gold loan growth; gold auctions still minuscule
- With normalcy restored and resumption of business activity after the lifting of COVID-related restrictions, demand for Gold loans has rebounded as customers opted for immediate access to financing as their own cash flows were stressed.
- We expect MUTH to deliver ~15% loan growth over the medium term. Positive ALM and more than adequate liquidity on the Balance Sheet has helped MUTH access debt capital with relative ease.
- With an AA+ rating, cost of funds is likely to decline further in coming quarters. This should mitigate yield pressures, if any. RoA/RoE is likely to remain robust (6%/23%) over the medium term. We reiterate our Buy rating with a TP of INR1,900/share (3.1x Sep'23E BVPS).
Piping hot news
Banks cheer as credit card swipes surge to new peaks
Buoyed by the festive season euphoria, credit card spends climbed more than 50% on-month in October and showed continued traction in the early days of November. Industry-wide data from September showed record credit card spends of more than ₹80,000 crore in September alone, and those are expected to breach record highs in October and November.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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