Neutral Manappuram Finance, target price Rs 110: Phillip Capital (India)

Phillip Capital (India) has neutral call on Manappuram Finance Ltd. with a target price of Rs 110.0. The current market price of Manappuram Finance Ltd. is Rs 94.55.

Manappuram Finance Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 8006.89 Crore) operating in NBFC sector.

Manappuram Finance Ltd. key Products/Revenue Segments include Interest, Other Operating Revenue, Dividend, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 1491.31 Crore, down -1.03 % from last quarter Total Income of Rs 1506.85 Crore and down -8.52 % from last year same quarter Total Income of Rs 1630.25 Crore. Company has reported net profit after tax of Rs 260.95 Crore in latest quarter.

Investment Rationale:
The brokerage believes that heightened competition in this space will continue to impact growth and compress spreads for gold finance NBFCs. Moreover, gold price remains the key factor in balance sheet growth in this business, hence the business model remains highly vulnerable to any sharp downward movement in gold prices.

Promoter/FII Holdings
Promoters held 35.06 per cent stake in the company as of 31-Mar-2022, while FIIs owned 29.83 per cent, DIIs 15.8 per cent.