Manappuram Finance shares jump 3% after Q1 profit soars 4x. Why Jefferies, Morgan Stanley raised target prices

Shares of Manappuram Finance jumped 3% on Wednesday after the gold financier reported a nearly four-fold rise in consolidated net profit to Rs 585 crore in Q1 FY27. Net profit stood at Rs 138 crore in the year-ago quarter.

Manappuram Finance shares jumped to nearly Rs 370 apiece during the morning trade before paring some gains. The company on Tuesday reported a 34% year-on-year (YoY) increase in revenue from operations to Rs 3,034 crore in the April-June quarter of FY27, compared with Rs 2,263 crore in the corresponding quarter of the previous financial year.

Expenses rose a little over 4% YoY to Rs 2,258 crore during the quarter under review, while net interest income (NII) stood at Rs 1,759 crore in Q1 FY27, registering 25% growth over Rs 1,407 crore in Q1 FY26.

Manappuram Finance declares dividend

Along with the Q1 results, Manappuram Finance declared an interim dividend of Rs 1 per share with a face value of Rs 2 each. The record date to determine the eligibility of shareholders set to receive the dividend has been fixed on August 17 (Monday).

Additionally, the company’s board also approved the plan to raise funds by issuing non-convertible debentures or bonds and commercial papers, as part of the proposed enhancement of the borrowing limits of the company to Rs. 1 lakh crore, subject to the approval of the shareholders.

Jefferies on Manappuram Finance share price

Jefferies maintained its ‘Buy’ rating on Manappuram Finance and raised its target price to Rs 430, implying over 19% upside. The brokerage said PAT was 15% above its estimate, driven by better NII and lower provisions.

Healthy customer additions and branch expansion should drive 19% growth in consolidated AUM in FY27, Jefferies said. NIMs have improved from Q4 lows and should stabilise, while credit costs are expected to moderate in FY27.

The brokerage raised its FY27-28 EPS estimates by 8-13% and expects sharp profit growth, aided by a low base, along with improved ROE over FY26-28.

CLSA on Manappuram Finance share price

CLSA maintained a ‘Hold’ rating on the shares of Manappuram Finance, with a target price of Rs 350 apiece, implying 3% downside potential. The international brokerage also said that the company’s standalone profit beat estimates by 3%, driven by in-line NII along with lower opex and credit costs.

Q1 marked a trend reversal from what was seen in the past 3-4 quarters, where growth came at the cost of margins, CLSA said, adding that gold loan growth was driven roughly half by tonnage and half by higher loan-to-value. Given an LTV of 66%, CLSA does not see much further scope for it to increase. Hence, gold loan growth hereon will be largely tonnage-driven as gold prices have been flattish, it added.

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Morgan Stanley on Manappuram Finance share price

Morgan Stanley maintained its ‘Equal-weight’ rating on the shares of Manappuram Finance, but increased its target price to Rs 360 apiece. The international brokerage noted the company’s strong gold loan delivery and guidance along with NIM expansion.

Manappuram Finance share price

Manappuram Finance shares fell around 1% in a week but gained over 5% in a month and 15% overall in 2026 so far to close at Rs 360 apiece on Tuesday, ahead of the release of the Q1 results.

In the longer term, Manappuram Finance shares have delivered 42% returns over a year, 143% over three years and 116% over five years. The company had a market capitalisation of more than Rs 33,816 crore.

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