**Manappuram Finance– Q3 FY20 (Cons- UnAudited)**
CMP: 272
Total revenue from ops at 1,399 Cr
1,081 Cr (29.41%) YoY 1,287 Cr (8.70%) QoQ
YTD 9 month revenue 3,860 Cr Vs. 3,031 Cr (27.32%)
Net Profit of 402.23 Cr
247.14 Cr (62.79%) YoY 407.65 Cr (-1.21%) QoQ
YTD 9 month profit: 1,082 Cr Vs. 671 (61.28%)
EPS (in Rs.) 4.75
2.93 YoY | 4.82 QoQ
YTD 9 month EPS 12.79 vs. 7.95
View: Result is overall good and strong. YoY Income and profit both have up. QoQ Income also up and profit slightly down due to other Income impact.
**Business Updates & Highlights**
Company is primarily into two main segment Viz. Gold Loan & Others – 82%, Microfinance – 18%.
YoY and QoQ topline growth for Gold Loan is 26% and 5% respectively. YoY and QoQ topline growth for Microfinance is 41% and 9% respectively.
YoY and QoQ bottom line growth for Gold Loan is 38% and 7% respectively. YoY and QoQ bottom line growth for Microfinance is 56.4% and (1%) respectively.
Gold loan & other asset is around INR 22,163 Cr Vs. 16,071 Cr in YoY. Microfinance asset is around INR 3,969 Cr Vs. 3,121 Cr in YoY.
Declared an interim dividend of 55 Paise (Fifty-Five Paise) per equity share of Rs.2. Fixed February 7, 2020 as record date.
**Financial**
ROE and ROCE is around 21% and 15% respectively and book value per share is around INR 48 and share is currently trading at 3.9x of its book value. Company is currently trading at annualized PE of around 11 which is fair as per Industry benchmark. Promoter holding in the company is around 35%, FIIs and Mutual fund hold around 44.3% and 4.3% in the company.
**Share View:** Share price high 191 (52 week) and now 188. Manappuram Finance Ltd or MAFIL is a non-banking financial company. Manappuram has over 4190+ branches across 25 states. Assets under management (AUM) of Rs. 194.38 billion and a workforce of 25,610.
Company is continuously showing strength and going upward journey. Short term outlook is also good in this segment and long term investor should continue with the company with target price of INR 250.
Opportunities: Gold upward pricing is also benefitting. Strong quarterly performance on last 3-4 quarters. Professionally managed company in both Gold Loan & Microfinance segment. Good dividend payout.
Risk: Gold is currently trading at all time high due to escalation high tension and global trade war. Any downward revision in gold will certainly hit the company financial.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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