Manappuram Finance Ltd. share price target

Gold financing business moat with strong AUM and earnings growth, supported by stable funding profile and benign asset quality

Manappuram Finance (MGFL) is one of the leading gold loan NBFCs in India and is well diversified into other business segments like housing loan, vehicle loan and microfinance, with a branch network size of around 4,623 spread across the country. In the current scenario, we expect gold prices to moderate in the medium to long term and hence do not expect further upside considering high valuation of the stock and hence, we value the...

Manappuram Finance reported strong gold loan (core business) AUM growth of 30% YoY which supported overall AUM growth of 35.5% YoY. Within Non-Gold, Asirvad MFI and vehicle finance segment clocked a 57/43% YoY growth respectively, along with its core Gold loan book growing at 30% YoY. NII/PAT growth came in strong at 30/63% YoY. Strong growth in PAT came on the back of reduction in the corporate tax rate along with higher operating profit growth (up 50% YoY). We retain our BUY rating on...

Manappuram Finance's (MGFL) gold AUM surged 30% YoY to Rs 162bn in Q3FY20.

Transforming into a full-fledged NBFC model Error! Bookmark not defined. Investment Thesis.................................................................................................. 6 In a sweet spot ................................................................................................... 6 Gold financing a structural opportunity ........................................................ 6 AUMs to grow at 20% CAGR over FY20-22E .................................................. 14 Gold Lending Business to grow at 11% CAGR............................................. 16 Non-gold lending business to grow at 34% CAGR ....................................... 19 Guarded gold asset quality; non-gold closely monitored .................................. 23...

Manappuram Finance (MGFL) in Q2FY20 benefitted from positive gold price momentum resulting in better than expected revenue growth, sustained scale up of non-gold businesses and benefit of tax resulting in bottom line improving by 82/50% YoY/QoQ. Asset quality was maintained at 0.6% GNPAs.

Manappuram Finance (MGFL) is one of the leading gold loan NBFCs in India and is well diversified into other business segments like housing loan, vehicle loan and microfinance, with a branch network size of around 4,490 spread across the country. The total assets under management (AUM) grew at 32% YoY and at 12% sequentially, backed by gold loans ( 21% YoY, 14% QoQ), microfinance ( 73% YoY, 13% QoQ), home loans ( 27% YoY, 5% QoQ) & vehicle loans ( 61% YoY, 7% QoQ)....

Manappuram Finance's (MGFL) gold AUM surged 20% YoY to Rs 152bn in Q2FY20, clocking the highest growth rate in the past 11 quarters.

Manappuram Finance delivered a positive momentum of 32% on its overall AUM book. Within Non-Gold, Asirvad MFI and vehicle finance segment clocked a 73/61% YoY growth respectively, along with its core Gold loan book growing at 20.4% YoY. NII/PAT growth came in strong at 17/82% YoY. Strong growth in PAT came on the back of reduction in the corporate tax rate. We retain our BUY rating on the stock with a TP of...

Manappuram Finance (MGFL) Q1FY20 performance continued to be driven by growth in the non-gold business and NIM improvement. Overall AUM growth of 21% YoY was led by ~66% growth in non-gold business. NIMs stood at 16.7%, up ~10bps sequentially, resulting in NII growth of 24%.