RBI ban on Asirvad due to material supervisory concerns

Company
18 Oct 2024
5 Min read 
  • Abhijit Tibrewal BSE Sensex S&P CNX 80,050 24,796 Bloomberg MGFL IN Equity Shares (m) 846 M.Cap.(INRb)/(USDb) 150.1 / 1.8 52-Week Range (INR) 230 / 125 1, 6, 12 Rel. Per (%) -13/-18/-1 12M Avg Val (INR M) 1711 
  •  MGFL's financials and valuations show a decline in PAT estimates. 
  •  The RBI has imposed a ban on Asirvad Micro Finance, impacting MGFL. 
  •  Asirvad contributes 27% to MGFL's consolidated AUM. 
  •  The ban on Asirvad is expected to last 6-9 months. 
  •  MGFL's stock is downgraded to Neutral with a TP of INR160. 
  •  Asirvad's AUM is expected to decline by 25% in FY25.
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