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This midcap stock rose 14% post Q1 results; here's why

This midcap stock rose 14% post Q1 results; here's why

The company reported a 42 per cent jump in net profit to Rs 116.85 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 82.27 crore

This midcap stock rose 14% post Q1 results; here's why This midcap stock rose 14% post Q1 results; here's why

Shares of IIFL Wealth Management Limited zoomed 14 per cent to hit a new 52-week high of Rs 1,580 on BSE after the company announced its earnings for the quarter ended June 2021.

The company reported a 42 per cent jump in net profit to Rs 116.85 crore for the quarter ended June 2021. Profit in the year-ago period stood at Rs 82.27 crore. Revenue from operations grew 9.47 per cent to Rs 382.55 crore in the June-ended quarter against Rs 349.46 crore a year ago.

The earning per share (EPS) has increased to Rs 13.29 in June 2021 from Rs 9.44 in June 2020.

The stock opened 4.5 per cent higher at Rs 1,448.00 against the previous close of Rs 1,385.05. Market cap of the firm rose to Rs 13,587.53 crore on BSE.

It has gained 54.5 per cent in the last one year and risen 53 per cent since the beginning of this year. The share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.

According to MarketsMojo, the company has high institutional holdings at 26.28%. Also, the technical trend has improved from Mildly Bullish on July 14, 2021, and the stock is technically in a Bullish range now. It has generated 21.5% returns since then and MACD and KST technical factors are also Bullish. However, it noted that the valuation is expensive right now.

"We have had a tremendous start to FY22 with the highest quarterly profit in the company’s history and Total Assets Under Management have grown 15% QoQ to Rs 2.82 Tn. We are also pleased to announce a special dividend of Rs 35 per share, in line with our focus on improving capital efficiency
and moving towards a consolidated ROE of 20%," said Mr. Karan Bhagat, MD & CEO, IIFL Wealth & Asset Management.

"Our alternate asset management space continues to see a great response to new products from both institutions, family offices and HNIs across strategies, including Listed Equity; Unlisted Equity; Credit as well as Real Estate," he noted.

"Client sentiment continues to be positive with a bias towards risk. We continue to maintain a judicious allocation between fixed income and equities across portfolios – and broadly have an asset allocation split of 50% each in the above asset classes," he added.

At 12:07 hours, the stock was trading at Rs 1,560.05, up 12.63 per cent on BSE.