Brokers’ Call: Manappuram finance is a Buy, says Espirito Santo

Espirito Santo has upgraded the ratings of Manappuram Finance to ‘Buy’ and increased the target price from Rs 39 to Rs 45.

Manappuram is a story which went badly wrong, from a high growth sector with >25 per cent ROE and enterprising management, to a declining loan book, falling RoE, a more hostile regulatory environment and concerns raised around governance.