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    Buy Manappuram Finance, target price Rs 126: Prabhudas Lilladher

    Synopsis

    Manappuram Finance Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 9259.56 Crore) operating in NBFC sector.

    Buy Manappuram FinanceShutterstock.com
    Promoters held 35.15 per cent stake in the company as of 30-Jun-2022, while FIIs owned 28.91 per cent, DIIs 13.5 per cent.
    Prabhudas Lilladher has buy call on Manappuram Finance Ltd. with a target price of Rs 126. The current market price of Manappuram Finance is Rs 108.8. Time period given by analyst is one year when Manappuram Finance Ltd. price can reach defined target.

    Manappuram Finance Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 9259.56 Crore) operating in NBFC sector.

    Manappuram Finance Ltd. key Products/Revenue Segments include Interest, Other Operating Revenue, Dividend, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1502.73 Crore, up .77 % from last quarter Total Income of Rs 1491.31 Crore and down -4.51 % from last year same quarter Total Income of Rs 1573.74 Crore. Company reported net profit after tax of Rs 281.92 Crore in latest quarter.

    Investment Rationale
    Going forward, Co. expects yields to not fall below 20-21% and can expand AUM without reducing yields or introducing teaser rates. From highs of 23% gold loan yield, 20-21% can be the new normal. It maintains AUM CAGR of 15% for FY22-24 and GNPA forecasts of 2.8%/2.4% over FY23/24. Worst seems to be over in terms of pricing pressure in the gold loan business, but Asirvad microfinance business continues to lag in AUM growth and asset quality.

    Promoter/FII Holdings
    Promoters held 35.15 per cent stake in the company as of 30-Jun-2022, while FIIs owned 28.91 per cent, DIIs 13.5 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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