Pressure on ROEs of gold loan cos an area of concern: ICICI Securities
In July, Investec Securities had downgraded its ratings on Muthoot and Manappuram to hold from buy, viewing them as value traps in the context of weak volume growth and increased competition, despite valuations being at near five-year lows. Muthoot shares rose 1% to close at ₹1,039 and Manappuram shares gained 2.3% to end at ₹101.45 on Tuesday.