Manappuram Finance


#461

The only problem is I am not clear if Manappuram going to invest or other way round? THere are some board meeting that day and prominent ones include Edelweiss and RBL. I think operationwise RBL is a perfect fit while Edelweiss has different client base compared with Mamnappuram.

Disc - Invested in Mana and Edel


(Mridul) #462

They said “investment proposals”. I think this will be some entities willing to invest in mana. Even i thought it cd be mana investing in some other company (inorganic), but more than one proposal makes me bend towards more than one company buying stake in mf. All speculative, and i can be completely wrong.


#463

after denying any talks repeatedly, it will be a kind of somersault to announce being acquired. And the promoters clearly believe that the stock is undervalued. It looks likely that they are acquiring another company to deploy excess capital or some big investor (Piramal kind etc ) want to invest by taking large (~10-20%) stake. This could result in re-rating of the stock and eventual exit of the promoters later on. I have always believed that running a gold finance company is not easy. Just my side of speculation.


(maheshkumar) #464

Looks like two big triggers this month

Tomorrow’s investment poroposal
And AUM growth this quarter


(Mridul) #465

To me this seems to be the most likely scenario. They probably have some investment proposals from more than one entities, which they might be discussing and deciding over in the meeting on Tuesday. They might not be selling the controlling stake just yet but a small stake as you said.

Yes, mgmt has been denying the stake sale rumors but poeple mostly remain tight lipped till the deal is struck. If they are getting a good valuation, i think mgmt will be prudent.


(Kumar Saurabh) #466

Another possibility could be offloading part of business like micro finance to some bank considering latest structural development , deals n outlook


(maheshkumar) #467

Is anyone attending the meet

Where can we get the meeting updates from


(Janarthanan Natarajan) #468

Authorised Mr Nandakumar to initiate further discussions on behalf of the company on investment opportunities available with the company.

Unfortunately, the announcement is a bit difficult to understand. Still not clear - whether this means the company is looking to sell part of its stake or is it looking to acquire another business as an inorganic growth opportunity.

http://www.bseindia.com/xml-data/corpfiling/AttachLive/b44ad365-48c1-417e-8762-20774bb2c7c8.pdf


(Susindar) #469

I may be wrong, but I think it is kind of straight forward that Manappuram is exploring new opportunities to invest further as it is one of their stated objectives to diversify away from gold loan financing. If someone else is investing in Manappuram, they would have notified as divestment options rather than investment opportunities!


(maheshkumar) #470

Looks like will get rerated sooner or later


(..pd..) #471

One article re rates the company?


(maheshkumar) #472

Hehe
Not about the article
It’s about the performance and valuations discrepancy


(abhishkjain2626) #473

For gold loans, which are adequately collateralised, why does the interest rate be northwards of 20%? Even mincrofinance loans without any collateral are being given at this rate.


(Kumar Saurabh) #474

Sense of urgency , Availability of other options in market I think r two key reasons


(..pd..) #475

EPS of 2.05 vs 2.26 YoY
QoQ flat


(..pd..) #476

Consol 2.06 vs 2.41 yoy
2.06 vs 1.90 qoq


(amitjain2711) #477

Consolidated revenue growth of 5.15% QoQ, which is good!


(nitin.verma) #479

Decent set of results from manappuram
Gold business

  • gold loan AUM up 5% QoQ, disbursements up 26% QoQ

  • operating expenditure to AUM down to 9.2% from 9.3%( which was going up during last few quarters), GNPA and NPA both down QoQ

  • Net profit flat
    Asirvad MFI

  • Finally seems to have turned around and given a small profit

  • AUM growth 7.5% QOQ and 27.9% YoY

  • NII growth 10% YoY and 22% QoQ

  • PAT up 101% QoQ ( Yoy suffered due to demon), turned loss to profit

  • Provisions down 18.5% QoQ

  • GNPA up slightly to 3.8 from 2.8 and NNPA down to 0.52

Housing finance had a flat AUM this quarter
CV finance did well with a 21% AUM growth

Expecting the MFI busniess to play well next quarter with risks being rise in interest rates
would wait for some more details in con call

DIs: invested since 80, added again @110


(maheshkumar) #480

Easy ,fastest and hassle less disbursement of loan makes it convenient for many people
While non gold loan can’t happen in minutes


(maheshkumar) #481

With much improved performance this quarter, we have now put the fallout from demonetisation behind us. From now on, it will be business as usual, we expect growth to pick up to the levels we saw before demonetisation," said V P Nandakumar, MD &CEO, Manappuram Finance.


The company is looking at fintech investment or strategic buyouts but there is nothing concrete yet, said Krishan.