Manappuram Finance Ltd. will be focusing on timely recovery of loans, especially in the non-gold segment, according to its Managing Director and Chief Executive Officer VP Nandakumar.
“In the non-gold segment, we are really concerned about what's happening in the economy,” Nandakumar told BloombergQuint. “In gold, we are hopeful of achieving the targeted growth and return on expenditure.”
Manappuram stands in a sweet spot underpinned by low leverage and effective asset-liability management, Prabhudas Lilladher said in a research note, adding it expects the non-bank lender's gold assets under management to grow at a compound annual growth rate of 11 percent over financial years 2020-22. The brokerage has maintained an accumulate rating on the company with a target price of Rs 195.
“The cost of borrowing for the non-gold segment also has not increased because our subsidiaries have got their credit rating upgraded by Crisil,” Nandakumar said. “They enjoy a credit rating of ‘AA-' for a similar size company, which is the highest rating in the country.”
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