I agree to some extent as then it doesn’t become research but almost a “reporting” what the company management wants them to write
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
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
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.
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!
Let the stock fall 20%, all those who are criticizing the reports, will start throwing the reports every where…
Any views on news of stake sale reported on VC Circle??
It might be related to succession issue… might expected VC could help.
A thought… not sure though
Mannapuram block deal at 102.4 per share at a total value of 9.2 cr
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
Kindly give the source / link of the same. Thx
Company denied any plan of stake sale
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.
it’s good that promoter is not selling his stake
it means edelweiss/RBL has to buy from open market and it will shoot the price to sky high
Manappuram vs. Muthoot comparison
Note: Manap NPA figures on a standalone basis.
Good post. Another important difference is NPA recognition period. Manna does 90 days and Muthoot 120. Once, Muthoot moves to 90 days in Q4FY18, NPAs will be even more.
thanks Rajesh, that’s an important point of comparison.
good post, but provisioning numbers for mannapuram and muthoot are much different. Let me provide individual info.
- mannapuram has total provisioning of @81 cr. for AUM of @13400 cr. (provisiong of 0.5%)
- Muthoot has total provisioning of @606 cr.(101 for NPA & 505 std. assets) on AUM of @277700 (provisioning of 2.1 %)
if we think logically manapuram has more riskier loans(1827cr. out of 13400 are micro finance ,non secure lending),so theoretically mannapuram should provide more in relation to AUM.
mostly investor just compare PE ratio and says muthoot is expensive. but spare some thought if muthoot had not provided for standard asset above RBI Guidelines(0.35% is rbi prov.req. vs 2% held by muthoot) its profit and book value would be higher.
most of muthoot finance NPA are secured gold loan asset (lower MFI assets propotion vs mannapuram) and can be monetized easily.
Disc: hold muthoot finance ,no position in mannapuram
After today’s news of indusland bank and Bharat financials I feel that we will see many acquisitions in near future between banks and nbfc