Buy Manappuram Finance, target price Rs 133: Geojit Securities

Geojit Securities has recommended buy rating on Manappuram Finance with a target price of Rs 133. The stock ended up 3.9 per cent at Rs 111.80 on Thursday while the BSE Sensex closed 1265.66 points up (+4.23 per cent) at 31,159.62.

Manappuram Finance Ltd., incorporated in 1992, has a market cap of Rs 9449.07 crore.

Investment Rationale


Owing to Covid-19 pandemic, the brokerage expects Manappuram’s interest income to only fall by 0.6 per cent in FY22 compared to previous estimate. Going forward, the brokerage expects NIMs to remain stable at 15.9 per cent in FY22 as it expects fast recovery in business growth.

Financials

Manappuram Finance's key products/revenue segments include Interest which contributed Rs 3370.28 crore to sales value (98.59 per cent of total sales); Fees & Commission Income which contributed Rs 45.86 crore to sales value (1.34 per cent of total sales) and Other Operating Revenue which contributed Rs 2.06 crore to sales value (0.06 per cent of total sales)for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 1399.02 crore, up 8.72 per cent from last quarter sales of Rs 1286.79 crore and up 29.40 per cent from last year same quarter sales of Rs 1081.20 crore. The company reported net profit after tax of Rs 402.23 crore in the latest quarter.