Current rally in gold finance companies can be attributed to rally in Gold prices which is likely to sustain for some time given the global scenario and interest rate situation. Good read.
Manappuram has traded cheap for a reason. It used to be number 2 in gold finance and now has lost that spot to few competitors. The real rerating will happen (quickly) if the promoter changes. Next generation is not interested and the existing promoter may be looking to sell. Time is very good to get decent exit valuation. Cupid Ltd. stock nearly tripled in matter of few months once the promoter exited. Good business with growth oriented promoter gets rerated quickly. Will be interesting to see how this story plays out.
Technical experts will know beforehand that something is happening based on price volume.
Discl: Invested
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