Now I think you have witnessed the difference between muthoot and Bajaj finance. Mr.market rewarded Bajaj finance with 10 percent rally on stellar results and punished muthoot with 12 % down move. Single product dependent companies won’t survive in this fast moving world. And many people are thinking the fast service and rural reach are the unmatchable moots of muthoot should evaluate their thesis once again. these companies will mostly trade in a range untill and unless they reinvent the wheel and make a complete transformation (which is highly improbable). The most likely scenario would be merger of gold finance nbfcs into any midsized private bank. That should be the end game. Because after the first generation promoter passes on the reins the second generation wont have any motivation to run a stangated business. These are my 2 cents.
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