ALSO READUnichem Lab near record high on talks of Torrent Pharma eyeing domestic biz Manappuram Finance surges 14% after huge block deals SJVN, Unichem Lab surge up to 15% on share buyback plan L&T Finance junks stake-sale plan for mutual fund arm, eyes IPO Titan Company hits record high after Q1 net profit nearly doubles
The stock of microfinance company Manappuram Finance rallied 5% to Rs 126, surpassing its previous high of Rs 125 touched on December 29, 2017 in intra-day trade.
According to rating agency ICRA, the Indian microfinance sector is seeing an improvement in asset quality as it recovers from the effects of demonetisation.
"There is a visible improvement in asset quality across all locations, except the Vidarbha region in Maharashtra State and some districts in Madhya Pradesh. Several micro-finance institutions have reported over 98% collection ratios for the loans originated in calendar year 2017. Consequently, the fresh slippage of loans into softer delinquency buckets has been arrested and non-performing asset levels seem to have peaked," says Vibhor Mittal, Head -- Structured Finance at ICRA Ratings.
According to ICRA, various factors have helped curtail the 0+ days past due rates from a peak of around 23.6% as of February 2017 to around 17.9% as of September 2017.
With some easing seen in the credit discipline associated with the joint liability group model, ICRA expects annualized credit costs in the micro-finance institutions asset class to stabilize at 2.5%-3.5%. However, given the marginal income profile and politically sensitive nature of the related borrower segment, asset quality will remain volatile and susceptible to one-off events, it added.
L&T hit a new high of Rs 1,336, up 1.6%, extending its past week’s 5% gain on BSE. The company today said the transportation infrastructure and water & effluent treatment businesses of L&T Construction have jointly bagged three EPC orders worth about Rs 23 billion from Andhra Pradesh Capital Region Development Authority (APCRDA).
The scope of work includes investigation, design & construction of roads, drains, culverts, water supply, sewerage, sewerage treatment plants, utility ducts for power & ICT, reuse waterline & avenue plantation for land pooling schemes in Zones – 6, 7 and 10 areas of Amaravati capital city. The package is part of the master plan to develop Amaravati into a Smart city with infrastructure on par with the best in the world, it added.
Titan Company up 1.8% to Rs 925, gaining 9.5% in past four trading sessions, after the company on January 2, after market hours said jewellery retail sales in October-December quarter (Q3FY18) has been healthy and in line with internal management expectations, despite Dussera being celebrated in the previous quarter.
Unichem Laboratories hit a fresh high of Rs 363, up 3%, ahead of board meeting today to consider share buyback proposal. In past four trading sessions, the stock soared 12% after the pharmaceutical company announced that the board of directors of the company at their meeting scheduled on January 8, 2018 shall consider a proposal to buy-back the fully paid-up equity shares of the company.
|COMPANY||LATEST||ALL TIME HIGH||PREV HIGH||PREV DATE|
|LAK. MACH. WORKS||6500.50||6628.15||6614.95||05-Jan-18|
|LARSEN & TOUBRO||1330.35||1335.95||1328.80||05-Jan-18|
|M & M FIN. SERV.||485.45||490.70||488.90||20-Dec-17|
|SUN TV NETWORK||1044.35||1049.50||1045.00||05-Jan-18|
|T N NEWSPRINT||497.35||499.00||483.80||05-Jan-18|