|Daily Chart of Manappuram Finance Ltd|
- “Gold loan non-banking finance companies (NBFCs) are doing a socially useful function and that provides a strong rationale for careful regulation of the activities” is what the K U B Rao committee’s recent final report said on the subject.
- The report had a detailed analysis with the final recommendations, which not only clarified the negative air against gold loan NBFCs but cleared a roadmap on how to shape the sector for long-term growth.
- RBI’s latest move partially contrasts with the Rao committee’s recommendations. While the committee suggested growth measures for gold loan NBFCs, RBI has for the last 18 months taken several hard measures to cap their growth. In addition to lower LTV (loan to value), stringent norms of KYC (know your customer) and on cheque payment over Rs 100,000 restrict the growth of gold loan companies,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services. Rao had recommended cheque payment only of amounts above Rs.500,000.
My recommended VIP Industries Ltd today touched Rs.60.10. It was mentioned that the scrip would gain if the rupee starts to appreciate. The scrip if you remember was recommended around Rs.47.50.
My recommended Kavveri Telecom Ltd today touched Rs.29.90 before closing at Rs.28.05 with very little volume. The scrip is waiting for a trigger to move up. If you have not received the FY13 annual report kindly enquire with the authorities, for the same. I am expecting the scrip to touch Rs.50, once the Annual Report comes up in the media, as it will give out the broader outlines of the company's future growth potential and revenue streams.
My recommended 3iInfotech Ltd today hit the buyer freeze in the mid afternoon trade. The company is expected to turnaround ether in Q3FY14 or Q4FY14. Prudent investors are probably taking position in the scrip, beforehand.