Manappuram's Net Income at INR 486cr grew by 59% YoY on the back of 29% growth in AUM. NIMs expanded 370bp YoY / 40bp QoQ as (i) the company suffered severe auction losses in 1QFY16, (ii) company shifted its entire incremental advances towards the three month product which commands a higher yield. Further, lower OPEX growth of 8% aided Pre Provisioning Profits to come in at INR 266cr, an increase of 156% YoY. Provisioning increased from INR 12cr to INR 16cr on YoY basis. Consequently profits grew by a robust 170% to INR 160cr, much above our estimate of INR 128cr. Motilal Oswal value the company at INR 114 (earlier INR 75),maintain BUY.