Manappuram Finance Q2 Results Review - NIMs Improved; Gold Loan Growth Revised Down: IDBI Capital

IDBI Capital Report

Manappuram Finance Ltd.’s gold loan portfolio grew by 1% QoQ (up 8% YoY) led by higher loan to value. Overall assets under management growth improved to 27% YoY versus 21% YoY (Q1 FY24).

Management revised down the gold loan growth to 8% versus 10% earlier; however overall AUM growth guidance maintained above 20% YoY. Micro finance reported improvement in profitability QoQ led by lower provisions.

MFI asset quality deteriorated slightly with gross non-performing asset at 3.0% versus 2.9% QoQ. Manappuram Finance's consolidated net interest income grew by 5% QoQ led by improvement in net interest margins; pre-provision operating profit grew by 8% QoQ led by lower operating expenses (up 2% QoQ). Profit after tax grew by 13% QoQ led by lower provisions (down 1% QoQ).

We have largely maintained the estimates for FY25E and maintain ‘Buy’ rating with a target price of Rs. 175, valuing it at 1.2 times price/adjusted book value FY25E as competition intensity eases.

Click on the attachment to read the full report: 

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.