Manappuram Finance


(DHUPER) #336

CARE has upgraded long-term credit rating of Manapuram Finance ratings to AA. This could be the reason


(Kumar Saurabh) #337

Block deals don’t happen on rating upgrade news. Also this news is a week old. May be sometimes it’s sheer undervaluation who knows :grin: anyway , hope there are good news in coming quarter to existing patient investors


(anshul jain) #341

This is the reason for sudden upsurge in share prices. However, one should not make his buy or sell decision based on this news.
Discl. Invested


#342

Don’t think they will sell so cheap. Ideal course of action is to leverage the balance sheet and generate decent returns before selling it off. The current undervaluation is slightly baffling. Even if we assume there is no growth ever it deserves PE of 12+ (risk free rate of 8%) assuming their gold loan biz is not going bust given duopoly situation. Is market discounting bad management of diversification or continued contraction in gold AUM? We will know in hindsight.


(AJ) #343

The interesting aspect here would be to see who was willing to exit such substantial holdings(the bulk deals NSE and BSE together is nearly 4.5% of shares outstanding) at a price of Rs. 94 per share.

Disclosure: Invested in Manappuram.


(DEBASHISH) #344

#357

And also take Management comments as gospel truth. Research is a fixed cost biz why should they spend in field visits when clients (MFs etc) also invest based on management commentary.


(DEBASHISH) #358

I agree to some extent as then it doesn’t become research but almost a “reporting” what the company management wants them to write


(maheshkumar) #359

Manappuram has huge scope for growth because of already placed distribution network
They just need to add new products to sell them to existing customers via their strong distribution network
I guess It’s just a beginning
In bull market such a stock trading below 10 Pe is the biggest joke


(maheshkumar) #361

http://bfsi.eletsonline.com/manappuram-finance-ltd-catering-to-demands-at-forefront-of-technology/

http://www.ashikagroup.com/UploadResearch/636239757418033118_Manappuram_Finance_Ltd..pdf

http://web.angelbackoffice.com/research/archives/fundamental/company_reports/AngelBrokingResearch_Mannapuram%20Finance_Others_0902017.pdf

They just change the target price by 10-25% and serve by adding little bit more flavours
So all research analysts have come up with a target price of 120-140

i guess these research activists just copy paste each other’s reports


(Chirag) #362

What else can they do?

They have write a 500 word report based on information available in the public domain. Even if they have any insider info they cannot use it in their reports.

Most of these brokerages will have similar tools and systems to calculate the FW earnings and future price.

Fact that they come out with similar reports and similar target price is not a surprise.


(abhi2525) #363

And the key is, if one doesn’t want to read, don’t read. Same people will cite the same reports once it confirms their view!


(..pd..) #364

Let the stock fall 20%, all those who are criticizing the reports, will start throwing the reports every where…


(Riddhi Shah) #365

Hi Hitesh,

Any views on news of stake sale reported on VC Circle??


(bkasal) #366

It might be related to succession issue… might expected VC could help.
A thought… not sure though


(nitin.verma) #367

Mannapuram block deal at 102.4 per share at a total value of 9.2 cr


(maheshkumar) #368

if edelweiss or rbl bank acquires 25 % of stake in manappuram to gain access to 3290 branches across india especially in south india
then it will help edelweiss/RBL to penetrate south india

also it will help the investors a lot
as this will be open public offer
and price will jump a lot

also it will give promoter stability and reliability and there will be PE rerating

so very positive for us

invested


(Rajesh Gulati) #369

Kindly give the source / link of the same. Thx


(sumitg04) #370

Company denied any plan of stake sale
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=4db2cd93-5495-401e-aa63-0535287a348a


(viveksingla) #371

Interesting to note is the fact that Mr. Nandakumar has denied selling any stake, he today holds around 35%. Though is wishful thinking at the moment but there can be another promoter coming on board who buys stake from open market, and hence compliments his current business with this one.

Can be all win.

Disc- Invested from lower levels.