Shares in Manappuram Finance Ltd
The under recovery may result in a reduction in profit numbers for the January-March quarter, Manppuram said, sending shares down 20 percent in the previous session.
Bank of America-Merrill Lynch downgrades the stock to "underperform" from "buy", and reduces its target price to 20 rupees from 48 rupees, citing higher-than-expected under reoveries.
"Guidance has been inconsistent and the risk to future earnings is high," BofA-ML says.
Manappuram's peer Muthoot Finance Ltd