Exit Muthoot Finance: Madan

Ashu Madan- President - Core Client Group, Religare Securities Ltd is of the view that one can exit Muthoot Finance.

Madan told CNBC-TV18, “Currently, Muthoot Finance the business model is under stress and even if it is better than the peers or we may talk about the comparison but if you look at the overall business model, it is under stress. It is reflecting in the price also. If the overall capital market or overall general sentiment does not support but the way things are panning out in macroeconomic factor, I think that is not a good news for a financial services company like this.
He further added, “Currently, I do not think there is anything positive around this because of the overall stress. So, general suggestion would be that maybe because today while we are talking probably is a wrong day because we are coming after a downturn of last two days where we have seen knee-jerk reactions in Nifty and overall market is down. So, my current advice would be that first available opportunity and some trend reversal, a midcap like this one should get out and wait for sidelines to get into this particular stock or probably an alternative stock.”