SP Tulsian of sptulsian.com told CNBC-TV18, "We have seen in Manappuram Finance where they have not recognised the interest income in the March quarter also to the extent of about Rs 275-280 crore and the same situation is likely to happen in the June quarter as well. We are again having the concerns of the rising non performing asset (NPA) and considering all this situation one have a big question mark on the gold finance companies."
"Manappuram being the weaker amongst the lot when one compares it with Muthoot the negative perception is likely to continue on the stock. The working is going for a toss, there was earlier some hope that probably the situation may improve in June or maybe September quarter. But I don't think that is likely because even the concerns on the business, non recognition of interest income can see the bottomline coming either with a very minuscule profit or maybe into the loss," he added.
He further said, "The situation is going to remain very bad for the stock or it is advisable that look to exit from the stock even now at the current level because I won't be surprised to see it correcting in single digit very soon." Also Read: Muthoot, Manappuram fall up to 3% on RBI restrictions
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
