Manappuram Finance Q4 Results Review - Guided Gold Loan Growth To Improve: IDBI Capital

IDBI Capital Report

Manappuram Finance Ltd.’s gold loan portfolio grew by 9% YoY during FY24 in line with the guidance (8-10%). Overall assets under management growth stood at 19% YoY (versus 27% YoY Q3 FY24) due to higher base. Management guided for gold loan growth improvement and overall AUM growth at ~20% in FY25.

We estimate 15% AUM CAGR (FY24-26) backed by non-gold portfolio. MFI asset quality deteriorated with gross non-performing asset at 3.7% versus 2.8% QoQ led by issues in Punjab and Rajasthan portfolio. Thus, provisions increased resulted decline in profitability on QoQ. Consolidated net interest income grew by 3% QoQ led by stable net interest margins; pre-provision operating profit remain flat QoQ led by lower fee income. PAT declined by 2% QoQ led by higher provisions (up 26% QoQ).

We have largely maintained the estimates and maintain ‘Buy’ rating with a target price of Rs 225, valuing it at 1.2 times price/adjusted book value FY26E.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

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