Manappuram Finance - Focus Beyond Gold Is Systematic: ICICI Securities

ICICI Securities Report

Stabilisation in gold loan yield, turnaround in micro finance Institutions business and traction in other segments like housing/micro, small and medium enterprises are noteworthy developments for Manappuram Finance Ltd.

However, the focus on non-gold businesses is well entrenched in the company with established processes in place which could potentially lead to sustainable growth ahead.

This, along with attractive valuations (1.2 times FY25E consolidated price/book), underline our overweight thesis on the stock.

Key risks include yield reduction, slow growth in gold loan business and asset quality issues with growth in non gold.

In this note, we elaborate the operating details of each business as illustrated by the management in its recently held Analyst Day (on December 2019, 2023) in Mumbai.

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