Manappuram Finance - Sustenance Of 18-20% RoE: Yes Securities

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..Yes Securities Report.In its Analyst/Investor Meet, Manappuram Finance Ltd. emphasised on-growth possibility of 8- 10% per annum in gold loans with yields of 21-22%,further ramping-up assets under management share of non gold loan products while improving their profitability,likelihood of sustaining 18-20% consolidated portfolio growth and return on equity, and promoters remaining fully committed in running operations and retaining the ownership (refuted rumors of selling stake). In our view, better customer acquisition/retention activity and some help from gold prices is required for envisaged growth in gold loans.Continuance of strong micro finance institution cycle and completion of significant capital raise in Asirvad would be a key catalyst for the stock, besides sustained strong growth and profitability improvement in non-fold loan and non-MFI businesses. On consolidated basis, a reasonably brisk AUM growth and likely continuance of moderate credit cycle in non-gold loan portfolios would underpin 18-19% RoE delivery over FY24-26.Notwithstanding the recent upmove, Manappuram still trades at an undemanding valuation of five times price/earning and one time price /adjusted book value on FY26 estimates. We retain 'Buy' and raise 12 million target price to Rs 210..Click on the attachment to read the full report:.Manappuram Finance - AUM Growth Momentum To Remain Robust; Maintain Buy: Axis 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 - Sustenance Of 18-20% RoE: Yes Securities

Significant capital raise through IPO to ensure strong growth sustenance in Asirvad MFI

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Manappuram Finance - Sustenance Of 18-20% RoE: Yes Securities

Significant capital raise through IPO to ensure strong growth sustenance in Asirvad MFI

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