Manappuram Finance
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Manappuram Finance is positioned for a positive financial outlook, driven by a robust gold loan franchise and a strategic pivot towards diversified lending. Management's focus on operational stability, digital innovation, and risk management is expected to enhance revenue growth and margins. The company's gold loan segment remains the primary growth engine, supported by a favorable regulatory environment and a planned expansion of its branch network. Vista's forecast anticipates a revenue recovery and margin improvement, with a target price reflecting significant upside potential. However, challenges such as regulatory risks and the need to stabilize non-gold portfolios remain pertinent. Over the next 12-24 months, key opportunities include the expansion into MSME and housing finance, while watchpoints include the upcoming leadership transition and competitive pressures in the gold loan market
Why We Like This Stock
- Strong growth in the gold loan segment, which is expected to drive revenue recovery and margin expansion
- Strategic branch expansion and digital innovation initiatives are set to enhance customer acquisition and operational efficiency
- Management's disciplined approach to risk management and asset quality is likely to support long-term profitability
Things To Watch Out For
- Regulatory risks and potential shifts in government policies could impact operational stability
- The need to stabilize the non-gold lending portfolio poses execution challenges
- Competitive pressures in the gold loan market may affect pricing power and margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,982 | 6,466 | 5,723 | 6,837 | 8,486 |
| Profit Before Tax (Cr.) | 2,959 | 1,665 | 1,270 | 3,207 | 3,670 |
| PBT Margin | 49.5% | 25.8% | 2219.1% | 46.9% | 43.3% |
| Net Profit (Cr.) | 2,158 | 1,028 | 715 | 2,406 | 2,714 |
| Earnings Per Share | 22.9 | 11.1 | 7.7 | 25.3 | 28.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 415 | 12-Aug-2026 |
| CLSA | ► Hold | 350 | 12-Aug-2026 |
| ICICI Securities | ► Hold | 335 | 19-May-2026 |
| IDBI Capital | ▲ Buy | 440 | 12-Aug-2026 |
| Jeffries | ▲ Buy | 430 | 12-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 12-Aug-2026 |
| Morgan Stanley | ► Equalweight | 360 | 12-Aug-2026 |
| Motilal Oswal | ► Neutral | 390 | 12-Aug-2026 |
Company Overview
Show Company Profile
Manappuram Finance Limited, a gold loan non-banking financial company, provides fund-based and fee-based financial services in India. It offers loans, such as gold, doorstep gold, online gold, vehicle, business, digital personal, and corporate loans; financing products, including two-wheeler finance, and micro home finance. The company also provides foreign exchange money transfer, digital wallet, and other services, such as depository services, demat account, and pan card services. In addition, it offers financing services for construction equipment and farm equipment. The company was formerly known as Manappuram General Finance and Leasing Limited and changed its name to Manappuram Finance Limited in 2011. Manappuram Finance Limited was founded in 1949 and is based in Thrissur, India.