The financials and NBFC sector are going to be one of the worst affected due to the covid pandemic. I think the writing has been on the wall since March sell off. I had sold it off many years ago.
The stock has been under pressure right since July 2018 ever since the auto cycle trouble came to the fore. Since then, the stock price has gone down from a high of 1300 to the recent lows of 270 or so.
There is a theory floating around about the two wheeler industry turning around citing the reason that people would prefer to use personal vehicles instead of public transport due to covid. But personally I dont find too much merit in the argument.
The only hope I see is that the auto industry being typical cyclical would at some point of time turn and can lead to revival in fortunes of companies like muthoot capital. But when that happens is anybody’s guess.
I feel sorry for your plight and dont have an exact answer to your query as I have no clue when the cycle is going to turn around. It seems a tough call to take at this juncture with so much price erosion already happening. If they do a concall, may be you can listen in and try to take a call based on what they express about the business.
I think everyone needs to have a sort of mental stop loss in their holdings so as to escape severe punishment. After a point these kind of positions tend to become hope positions. Sectors that have lost market fancy are going to give a lot of pain to those who hope for these sectors to revive in the short term. It will take a long time of consolidation even after a bottom is formed for these sectors to make any sort of meaningful comeback. And on the business front, the macro environment and extension of moratorium etc are not going to help either. When things go wrong, its not only one or two that go wrong. They go wrong in bunches.
@nithin_Shenoy I have no idea about the tyre sector as I have not looked at any of the auto or auto ancillary companies of late. These beaten down names can attempt dead cat bounce but one has to be nimble enough to play it and time the entry and exit accordingly. Not my cup of tea.