SP Tulsian positive on Manappuram General Finance

SP Tulsian, sptulsian.com is positive on Manappuram General Finance.

Tulsian told CNBC-TV18, “Manappuram General Finance, the acquisition of 5.5% stake by bearings is definitely very positive. But if you purely go by the fundamentals the stock is ruling or may be now it is ruling virtually at a book value of one time with a PE of about less than 4 or may be about 4 times and if you see the growth the company has posted this has been the fastest growing gold finance company in last 3-4 days.”
He further added, “The kind of erosion we have seen in the share price of both Muthoot and Manappuram General Finance but Manappuram General Finance has taken a more beating because of the RBI regulatory moves and all that and I have been keeping my positive stance on the stock for last couple of months that there is nothing to really go down from here on. But the stock can gradually moved to about Rs 40 if you keep a view of about may be 2-3 months because from here on the people will be closely watching the first quarter results and if that is seen coming more or less on the expected line FY12 EPS was at about Rs 7 and if they are able to post an EPS of Rs 2 plus for the first quarter, definitely the stock will be seen getting vastly rerated. So positive view and stance still continues because even today though the news is out as of yesterday’s transaction but if you see today the volumes are quite huge and one has to see the delivery percentage which has been quite high for last 3-4 days which we have been witnessing. So continues to be having positive view on the stock at least from a short term point of view to the level of Rs 32-33.”