Manappuram Finance Q2 Results Review - Rising Delinquencies A Concern, PAT Inline: Dolat 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..Dolat Capital Report.Manappuram Finance Ltd. reported in line profitability metrics, as contained opex and low provision coverage ratio reduced volatility in earnings despite a sharp rise in non-performing asset across segments. Although credit costs across standalone and consolidated books have increased versus FY24 (at 67/210 bps versus 40/150 bps in FY24), PCR remains much lower than industry across portfolios (~13% PCR in standalone MFL including VEF/MSME). Gold loan growth moderated to 3% QoQ, while consolidated AUM grew by 2% QoQ led by a slowdown in MFI, MSME, and on-lending portfolios. A sharp rise in delinquencies across non-gold portfolios (including secured assets like home loan/vehicle/micro, small and medium enterprise constituting 21% of AUM) remains an area of concern. We factor in 90-100 bps of credit costs for standalone business versus 75-80 bps earlier, along with slight moderation in growth. With 5- 7% downward revision in earnings (standalone book) and moderation in valuation multiples, we maintain our ‘Reduce’ rating with a revised target price of Rs 170 (Rs 215 earlier). The impact of embargo on Asirvad book will reflect in subsequent quarters.Click on the attachment to read the full report:.Titan, Dr. Reddy's, Berger Paints, Mankind Pharma, KEC, ABB, Sai Silk And More Q2 Review: HDFC Securities .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 Q2 Results Review - Rising Delinquencies A Concern, PAT Inline: Dolat Capital

The impact of embargo on Asirvad book will reflect in subsequent quarters, says the brokerage and maintains 'Reduce' rating on the stock.

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Manappuram Finance Q2 Results Review - Rising Delinquencies A Concern, PAT Inline: Dolat Capital

The impact of embargo on Asirvad book will reflect in subsequent quarters, says the brokerage and maintains 'Reduce' rating on the stock.

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