IIFL surges 3 % on bourses, courtesy value buying opportunity

Diversified financial player, IIFL Holdings has surged in Thursday's trading session by more than three per cent as investors rushed to buy the stock after the steep correction witnessed in all the major NBFCs post demonetisation concerns.

Post demonetisation the stock has seen a steep fall in its price from its November 8 close of Rs 308.55 to hit a month low of Rs 242.45 on November 21 i.e down more than 21 per cent from its pre-demonetisation high.

Stock has corrected due to the concerns arising out of the loan repayment liability, as people are facing a cash crunch, which could subsequently lead to weakening of asset quality of the financing major. However, with RBI relaxing norms for classification of loans the industry has received a breather with respect to asset quality problems in wake of the demonetisation move.

Investors sensing a good opportunity to lap on to the stock with cheaper valuations has helped IIFL Holdings gain more than 7 per cent in the last five trading sessions.

Company has recouped part of the losses and given the strong business portfolio, stock is likely to scale new highs in coming weeks.