Manappuram Finance — Microfinance Is Now The Prime Engine Of Growth: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.We attended Manappuram Finance Ltd.'s analyst meet hosted by its senior management team. We came back positive from the meeting. The management sounded confident of achieving its guidance of 20% compound annual growth rate in consolidate assets under management over the next few years (largely aided by higher growth in non gold business) with a sustainable return on equity of 20%. As part of the diversification strategy, non gold AUM share in overall portfolio has further improved in Q4 FY23 (45-46%) from ~42% in Q3, and with relatively higher growth in that portfolio, its share will reach 50% in FY24. We have increased our FY24/25 earnings estimates by 5%/6% respectively to factor in higher growth in non-gold segments. We estimate a 16% CAGR in Manappuram Finance’s AUM to deliver a 20% CAGR in earnings over FY23-FY25E. We believe, with optimal product mix along with improving asset quality and expansion in the micro finance institution business, Manappuram Finance should be able to improve their return on asset/return on equity to 4.5%/19% by FY25E from 4.1%/16.9% in FY22, respectively..Click on the attachment to read the full report:.Manappuram Finance - Non-Gold Businesses On Strong Growth Trajectory: Motilal Oswal.DISCLAIMERThis 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.

Manappuram Finance — Microfinance Is Now The Prime Engine Of Growth: Systematix

Manappuram Finance plans to infuse ~Rs 2.5 billion into its MFI subsidiary in FY24.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP