In my view fall in stock price could be due to one or more of the following factors:
1- Technical- If you look at stock price movement over the last 3 years, it tends to correct 20-25% after making new ath. This time around, the correction has been the steepest at 30%.
2- Insider selling- Heavy insiders exits in the last 2-3 years have been an overhang which has been disrupting stock price momentum so there might have been anticipatory profit booking after the last rally.
3- Valuations- Before Q1 results, stock was trading at almost 5 times books which might have also contributed to the correction.
4- RBI action- Credit squeeze created by RBI has created some uncertainty over NBFC’s earnings.
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