Is Manappuram Finance Stock a Good Choice for Your Investment Portfolio?
Manappuram Finance is one of the finest dividend-paying stocks on the market. Despite the temporary dip caused by demonetization, long-term investors are encouraged to hold and even add more to their holdings. This article explores the rationale behind this recommendation and discusses the potential future prospects of the stock.
Temporary Impact of Demonetization
Manappuram Finance experienced a decline in stock prices in the past 10 days due to demonetization. However, the impact of demonetization is considered to be short-lived, and the market is expected to revert to its normal state in the coming weeks. There's no need to panic; instead, take advantage of this opportunity to invest in quality stocks at decent valuations.
Technical Analysis and Strategic Investment
The technical indicators for Manappuram Finance show a weak position after crossing Rs. 100. Investors are advised to wait for a further decline to Rs. 65 levels and then to buy for a target price of Rs. 125. Holding the stock for a period longer than 12 months is recommended. This long-term strategy aligns with the company's stable gold prices and the increased sales from online gold trading.
Strategic Growth and Future Prospects
Investing in Manappuram Finance is more than just about current market conditions. The company is focusing on diversifying its product offerings, including gold loans, non-gold products like microfinance, and home loans. These initiatives are aimed at improving the overall performance and profitability of the business model.
The future looks promising for Manappuram Finance, particularly with the increasing gold prices. The company is well-positioned to capitalize on these trends through both traditional and online sales channels. Its strong dividend payout is another compelling reason for investors to consider holding the stock.
Conclusion
In conclusion, Manappuram Finance is not just a hold; it is a further buy or add. With a solid business model, strategic growth initiatives, and a stable price environment, the stock presents a great opportunity for long-term investors. Happy investing!
Keywords: Manappuram Finance, Stock Investment, Dividend Payout, Quality Stocks