Manappuram Finance Q3 Results Review: NIMs Improved QoQ; Gold Loan Growth Guidance Maintained: IDBI Capital

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Manappuram Finance Ltd.’s gold loan portfolio grew by 11.5% YoY (versus 8% YoY Q2 FY24) due to base effect. Overall assets under management growth remains strong at 27% YoY. Management maintained the gold loan growth guidance; overall AUM growth guidance maintained above 20% YoY. We estimate 17% AUM compound annual growth rate (FY23-26) backed by non-gold portfolio. MFI reported strong profitability QoQ led by improvement in net interest margins. MFI asset quality improved slightly with gross non-performing asset at 2.8% vs 3.0% QoQ. Consolidated net interest income grew by 7% QoQ led by improvement in net interest margins; pre-provision operating profit grew by 8% QoQ led by lower operating expenses (up 4% QoQ). Profit after tax grew marginally by 2% QoQ led by higher provisions (up 25% QoQ). We have revised the estimates upwards for FY25E/FY26E (up 3%/5% adjusted book value respectively) and maintain ‘Buy’ rating with a target price of Rs 225 (earlier Rs 205), valuing it at 1.2 times price/adjusted book value FY26E..Click on the attachment to read the full report:.Sundaram Finance Q3 Results Review - AUM Growth Remain Strong; Asset Quality Improved: IDBI Capital.DISCLAIMERThis 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.

Manappuram Finance Q3 Results Review: NIMs Improved QoQ; Gold Loan Growth Guidance Maintained: IDBI Capital

Net yields on gold loans stood at 22.3% during Q3 FY24 versus 21.9% QoQ as 90% of gold book has more than 22% yields.

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