Thursday, December 06, 2012
Manappuram General Finance Ltd: Ready to shoot up
The government will table the Banking Laws (Amendment) Bill, 2011, among other bills, in the winter session of parliament which began on 22 November 2012. The Banking Laws (Amendment) Bill, 2011 includes increasing the voting rights of large shareholders in private banks to 26% from 10%, and giving the central bank more powers. The Reserve Bank of India has held back approvals of new bank licenses, urging the government to first get the bill passed in parliament.
This is expected to give a necessary push to all the stocks in NBFC sector. Today, we already saw some movements and I am sure within the next few days, this stock will cross Rs.40. The management has already said that the 2nd half will be much better than the 1st half, which means most of the financial sparks will be seen from December, 2012 quarter, onwards. The company has a no--nonsense business model, which is expected to give it steady returns, going forward. I have now increased my short term target to Rs.55-60.