I was trying to make sense whether the stock is worth dipping in or not:
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With the recent DD , stock prima-face may look attractive , but with RBI guidelines their gold loan book is wiped out.
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Now when the gold loan book was growing in excess on 30% and in absence , so consider their remaining loan books remains intact for FY26, though the trust issues created by this fiasco, will have spill affect on their over all loan book, and their other verticals may see a tampered growth, reduction in growth rate in FY26.
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Stock might appear attractive based on FY-24 earnings multiples, say about 8-9 PE.
But come FY26 , their EPS estimated might come down to around 35 odd levels, assuming the restriction on gold loans remains through out FY26, which translates to around PE multiples of excess of double digits.
Assuming gold loan restrictions remains in FY26, and currently trading at around 12 odd PE multiples of FY26, is not much attractive when compared to peers like manapuram.
But the catch is if the gold loan restrictions are revoked anywhere between 6-9 months, then the stock is offering value.
But one can never be certain, if RBI revoked gold loan lift in 6-12 months time.
Contradicted openion welcome.
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