Manappuram Finance increases by 3% on strong Q4 performance

    Manappuram Finance increases

    Following strong Q4 earnings, Manappuram Finance Limited shares increased by 3% in early trading. Manappuram Finance shares were 2.23 percent higher at Rs. 112.45 on the NSE at 9:40 a.m.

    On May 12, 2023, Manappuram Finance announced a 58% increase in its consolidated net profit for the quarter ended in March compared to the same period a year earlier, coming in at Rs 413 crore. The Board of Directors of the business has declared an interim dividend of Rs 0.75 per equity share with a face value of Rs 2.

    Read More: – HDFC Q4 earnings: The mortgage lender’s profit jumps 20% year on year to Rs 4,425.5 crore

    The Kerala-based NBFC’s overall income was Rs 1,771 crore, up 19% from Rs 1,481 crore in the same period last year. Three-fourths of the company’s profit, or pre-tax profit, comes from the gold loan industry, which saw a 16% growth to Rs 422 crore. In the meantime, its micro-finance sector reported a pre-tax profit of Rs 144 crore compared to a deficit in the prior year.

    However, Manappuram’s gold loan assets within management decreased 2% year over year as borrowers needed less security to borrow money due to increased gold prices. By comparison, its client portfolio for gold loans went up 0.4%.

    Brokerage Views

    Manappuram Finance got a buy rating from CLSA with a target price of Rs 140 per share. The share price will be driven by a weak Q4FY23 with profit after tax missing forecasts by 5%. A net interest margin (NII) of 8% was the only factor contributing to the shortfall. After 2 quarters of a dip in gold loans, Manappuram produced a 6% sequential increase, which the management ascribed to a decrease in gold loan yields caused by loan duration extensions. The management said that a stay order had been imposed by the high court on the most recent ED probe.

    Manappuram Finance has a target price of Rs 143 per share set by BofA. According to the company, earnings improved non-gold profitability and growth, meeting forecasts and supported by a solid FY24. The business claims that the high court on Friday granted a stay of the ED’s executive order and that it would be overturned in upcoming sessions.

    Manappuram Finance has been rated as overweight by Morgan Stanley, with a target price of Rs 160 per share. Positively unexpected was the company’s loan increase. Due to the switch to long-term loans, the rates on gold loans were lower; however, management expects this to progressively improve. According to the brokerage company, Asirvad’s performance and asset quality were both excellent.


    Moneycontrol experts’ opinions and investment advice are their own, not the views of the website or its administration. Before making any investment decisions, Moneycontrol recommends customers to seek the advice of qualified professionals.

    Krishnaanand nishad
    Axpert Media has been for more than a year, a provider in India's digital journalism. Founded & CEO Krishnaanand lalabahadur nishad

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