Manappuram Finance hits lifetime high on value buying, surge in gold prices

Manappuram Finance hits lifetime high on value buying, surge in gold prices

Manappuram Finance shares surged over 5 percent to hit an all-time high of Rs 141.20 on Tuesday on value-buying amid a surge in gold prices.

The stock closed at Rs 139.15, rising 3.46 percent with 1,06,50,609 shares changing hands on NSE, against a daily average of 3.8 million shares.

Earlier, at 2.01 pm, the stock quoted at Rs 138.75 per share on NSE, trading nearly 3.16 percent higher, while the benchmark Nifty50 was down 37.20 points at 12,051.

The share opened marginally lower at Rs 139.05 against Monday’s close at Rs 139.50.

The recent rise in gold prices render this stock attractively priced, Cogenics quoted unnamed dealers and analysts as saying, as the precious metal soared to a two-month high in international markets on Monday.

Due to its surplus liquidity, Manappuram Finance can extend more loans against gold, the news agency added.

The company is growing its gold loan book because of a considerable decrease in its loan to value ratio, it said.

Additionally, investors remain upbeat after the International Finance Corporation announced a maiden investment, committing $35 million to Manappuram Finance last month.

So far this year, Manappuram Finance has returned almost 50 percent to its investors, while the one-year return on the non-banking financial stock is 34 percent.

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