Valuation is not just comparing PE and P/B for an NBFC. One needs to look at ROA, ROE, Dividend Yield, Equity dilution frequency, Asset quality, growth rate, Management pedigree etc.
Will you call Reliance capital cheap just because it trades at a low PE and under 1 time book?
IMO, Manappuram is undervalued based on the metrics I’ve listed above.
Disc: Invested and it’s one of my top 3 holdings.
As per this
transactions above 25k in cash restricted.
Will it affect loans by business who deal largely in cash/black money and thereby affect mannapuram?
Nandakumr is looking to sell their remaining 28.2% stake[promoter holding 34.45%] to few large NBFCs in the foray. Link
Nandakumar sold around a 4.3% stake in the company, 7 months back for Rs 144.65 crore ($29 million) as he looked to repay deposits taken by his privately held firm, Manappuram Agro Farms. The selling price was Rs 40.
@Prdnt_investor 7 months back the share price of Manappuram was around Rs 85-90. Are you sure Nandakumar sold 4.3% 7 months back? Infact VP Nandakumar has only bought shares in 2016, he never sold a single share. Verify this yourself at the BSE trading disclosures link
http://www.bseindia.com/corporates/Insider_Trading_new.aspx?expandable=2
Thats the news of March 2012. 5 years back. Very very old news. The link that you shared does not show the right date.
The business outlook for this financial year - growth in AUM in the range of 15 to 20 per cent. non-gold businesses already contribute about 16 per cent of our total business, which we hope will increase to 25 per cent by the end of 2017-18.
Thanks for very timely sharing. Based upon RJ blog that Samir Arora has exited micro finance business and declared that he would never enter it again- I was seriously considering pruning my holding in Manappuram tomorrow. However, based upon what you have shared- I will increase my holding tomorrow ! Thanks.
I doubt about robustness of your conviction 
@yudiaag Friend, do not take anyone’s analysis or statement on face value , be it Samir arora or nandkumar until you have tremendous confidence and evidences of their success ratios
In his today’s interview Mr Nandkumar denies to any stakesale and put forward a ambitious target of achieving revenue of 50% of non gold.
Something seems off about their Cash from operating activities. Fluctuating wildly from -ve to +ve and back. Does anyone have an idea what could be the reason?
It’s probably because their loan book (considered as part of operations) contracted in 2013 and 2014 because of RBI regulations and LTV and duration of loan. This must’ve led to inflow from operations (usually a sign of contraction in the financial sector)
It’s common in most of the financial companies.
Their cash flow fluctuate positive /negative.
For validation you can check the same for hdfc bank, icici bank etc. Actually it’s quite complex to read cash flow of such institutes. The best parameter for such companies is the honesty and quality of management. Then comes growth, RoA etc
I agree. The way one need to look at Finance company is different. Though i am also learning it, but is essential to know it as absence of such insight may lead to serious trouble as well.
Can think of two already known reasons -
However, I’m thinking that the current valuations mean that any average Q4 results shouldn’t also take this much lower unless there is an overall market correction.
Reminds me of a recent TV quote - ‘You either get good prices or good news’ - good prices these days I say 
Disc: Invested and adding.
Happened to see this chart reading on twitter. Hopefully looking forward to it. MANAPPURAM Finance - Cup and handle for NSE:MANAPPURAM by SunilDhawan — TradingView India
It formed the handle in March when it hit 105 but failed to breakout and instead has fallen for over a month now. Today’s rally gives hope. Fingers crossed.
phreakv6phreakv6@gmail, sajijohnSaji John
Thanks. Though i know nothing about technical and am absolutely zero in it.
