The stock of this leading financial service provider in India rose to 13% after the Reserve Bank of India lifted the restrictions imposed on its gold loan business.
Stock Price Variations:
With a market capitalization of Rs. 20, 970.00 Crores, the shares of IIFL Finance (NS:IIFL) started the session with a gap up opening of Rs.549.00 per share above 10.69% from the previous day close of Rs. 495.95 per share and made an intraday high of Rs. 560.60. At 11:03 am the stock was trading at Rs 541.00 per share, 9.08% above the previous day close.
The stock made a recovery from yesterday’s fall of 7% after the company was at risk of a credit rating downgrade from AA to AA- because of the ban on its gold loan business.
Is IIFL Finance a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
Reason for Rise:
As per the exchange filings The Reserve Bank of India(RBI) has lifted the restrictions imposed on the gold loan business of IIFL Finance Limited. The restriction was earlier imposed on March 04, 2024, by the RBI after noticing discrepancies in the assaying and certification of gold purity and net weight during loan approvals and auctions. As an impact the gold loan AUM decreased from Rs. 26,081 Crores on March 4 2024 to Rs. 12,162 Crores on August 5, 2024.
Financials Performance:
For Q1 FY25 the company reported a net profit decrease of 28.48% to Rs. 338.16 crores compared to Rs. 472.86 crores in Q1 FY24 while revenue from operations marked an increase by 13.63 to Rs. 2,613.4 crores from Rs. 2,299.78 crores in comparison to the same period.
As per Q1FY25 company has a total AUM of Rs. 69,610.00 Crores and home loans and gold loans contributing most of it about 40% and 21% respectively.
About the company:
IIFL Finance Limited is one of the leading players in the financial services space in India. Together with its subsidiaries – IIFL Home Finance Limited, IIFL Samasta Finance Limited and IIFL Open Fintech Private Limited, it provides a diverse range of loans and mortgages.
The business segment of IIFL Finance includes Home loans, Gold Loans, Micro Finance, Loan against property, Digital loan and Construction and real estate and the company has a nationwide presence with a thriving network of 2600+ branches across 500+ cities.
Written By: Joseph Pv
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