Business News Desk – If you are looking for a better stock for investment, then you can keep an eye on the shares of IIFL Finance. Actually, brokerage firms are looking bullish about this stock. Last Friday, the company’s shares saw a strong rise of 7.37 percent. The stock closed at Rs 530.75 on BSE. With this rise, the market cap of the company has gone up to Rs 22,516 crore. The 52-week high of the stock has been Rs 683.78 and the 52-week low has been Rs 304.17.
What is the target price of IIFL Finance
Brokerage firm Motilal Oswal has expressed hope of a rise in the shares of IIFL Finance. In its research report dated 19 September 2024, the brokerage has given a buy rating to the stock and has set a target price of Rs 600. According to this, the company’s shares are likely to make a profit of 13 percent.
RBI lifts restrictions imposed on IIFL Finance
The Reserve Bank of India (RBI) has recently lifted the restrictions imposed on IIFL Finance’s gold loan business. After the RBI’s decision, the company has again got permission to approve, distribute and sell gold loans. This decision has come into effect with immediate effect. RBI had imposed several restrictions on IIFL Finance’s gold loan business on March 4, 2024, citing violation of rules. Due to these restrictions, the company was not able to take its gold loan business forward. But now the company has got a big relief from this decision of RBI.
What is the brokerage opinion on IIFL Finance
Brokerage firm Motilal Oswal said in its report, “On March 4, 2024, when the ban came into effect, IIFL’s gold loan AUM was ~INR260b. It then declined to ~INR147b by June 2024 and ~INR122b by August 5, 2024. Assuming outstanding gold loans are reduced by ~10% every month, we expect IIFL’s gold loan AUM to be ~INR105b by September 19, 2024, when the ban is lifted. We expect IIFL to now make a strong comeback in the gold lending business and regain its market share in this segment.” The brokerage further added, “We believe IIFL can take pricing measures and (if required) compete aggressively to boost its gold loan growth. While this may have some impact on the profitability of this segment in the near term, it will help IIFL regain its market share from its competitors (like MUTH, MGFL) and even some banks.”
How have IIFL Finance shares performed
IIFL Finance shares have gained more than 14 per cent in the last one month. The stock has given a strong return of 63 per cent in the last 6 months. However, the company’s shares have fallen by more than 9 per cent so far this year. It has declined by about 7 per cent in the last one year.
