Manappuram Finance - Non-Gold Businesses Appear Promising If Executed Well: Motilal Oswal

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..Motilal Oswal Report.To mitigate the cyclicality in the gold loan segment, Manappuram Finance Ltd. has been actively diversifying into non-gold segments, with the share of non-gold products in the company's assets under management mix at 47% (versus 37% YoY). Manappuram Finance presented its non-gold businesses have successfully navigated Covid and have reverted to pre-Covid business level. It also exhibited its readiness to deliver healthy assets under management growth and profitability in its non-gold businesses. The management has stated that it will not pursue loan growth at the cost of a compression in spreads, which we believe will continue to be a driver for higher profitability. Manappuram Finance trades at 1.0 times Sep-25E price/book value and we believe that there is a scope for a re-rating in valuation multiples for a franchise that can deliver a sustainable return on equity of ~20%. Risk-reward for Manappuram Finance is favorable and we maintain our 'Buy' rating with a revised target price of Rs 205 (based on 1.2 times Sep-25E consolidated book value per share)..Click on the attachment to read the full report:.Varun Beverages Shares Surge 18% To Record After South Africa Buyout.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 - Non-Gold Businesses Appear Promising If Executed Well: Motilal Oswal

Guides for consolidated assets under management compound annual growth rate of 20% and return on equity of ~20%

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

Manappuram Finance - Non-Gold Businesses Appear Promising If Executed Well: Motilal Oswal

Guides for consolidated assets under management compound annual growth rate of 20% and return on equity of ~20%

Choose a plan

Follow Us

DOWNLOAD THE APP