Manappuram Finance - Non- Gold Portfolio To Support Growth: IDBI Capital

IDBI Capital Report

We attended analyst meet hosted by Manappuram Finance Ltd. which showcased each business vertical. The management has maintained the gold loan growth to be in the range of 8%-10% YoY while sustaining gold loan yields at existing levels.

Further, they expect to maintain overall return on equity above 20%. The management is of the opinion that the new risk weight norms announced by Reserve Bank of India will not have any significant impact. The share of non-gold loan business has increased to 47% of the total business (in line with the management’s target of 50%).

They further reiterated that despite focusing on diversification, gold loan continues to be a major focus area for growth since ~68% of the market is dominated by unorganised players.

We maintained estimates and retain ‘Buy’ rating with a target price of Rs 205, valuing it at 1.15 times price/adjusted book value FY26E as competitive intensity eases.

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