Manappuram Finance


The acquired company has 3% RoA and leveraging it 6x will give you 20%+ RoE closer to what Manappuram could earn on consolidated basis. Even HDFC has separate education sector vertical managed by a different team. What do you mean by gold loan being high quality biz? Whatever is good for a customer is great for businesses ultimately. It might be great for investors but not so for borrowers currently. That is one reason gold loans don’t get great valuation. Ask a question to yourself - would you go and mortgage your jewelry in normal circumstances?

I consider gold loans as necessary evil for a society in which there are large numbers of undisciplined or distressed borrowers. The credit system needs to be extra cautious and probably punish them with high interest rates for their lack of financial planning or extra savings. Sustainability of gold biz in very long term is always in doubt.

BTW Quinag acquired another 3% stake today in a block deal to take their stake to 10%.

(Janarthanan Natarajan) #562

Mr Nandakumar’s interview regarding IFSC acquisition

(anil jain) #563

Manappuram promoter bought over 9lk shares from open market. Every quarter when company announces dividend, promoter increased his holding consistently

(rollnball) #564

quinaq bough…but @aniljain u just mentiond promoter bought also…can u share link for that

(SD007) #565

(maheshkumar) #566

(AJ) #567

Any news of the new CFO? Kapil Krishnan’s last working day was 30th of June 2018.

(shikhar mundra) #568

Manapuram AR 18 notes

AUM – 15,765 cr ; 15.4 % yoy
Gold loan disbursements – 62, 155 cr ; 18.5 % yoy
NII – 23957 cr; 8 % yoy
Total customers – 3.8 million ; 12% yoy
• Digitalization important part of our strategy
• New businesses 1/4th of our AUM , will go up in future
• 2/3rd of Indias GDP is in gold in households , right now only 10 % monetized , we hope to encash this
• Gold – 64 ton assets
• Borrowing cost – 8.7 %
• 4199 network branches , 24886 team of employees
Gold loan Division
• Gold loan AUM Rs.11,700 cr ( 5.5% growth)
• NP – 700 cr

Asirvad Microfinance
• MFI AUM 2437 cr vs 1796 cr ( 35 % yoy)
• Gross NPA 2.33 % NPA vs 4.47 % last year( seems like bad effects of demonetization are going off)
• Total branches added 69 ( 832 total)
• 2nd half of the year was much stronger , provisions for the year at 17.2 cr declined 57.2 % yoy
• This segment can be a major growth driver
Housing finance
• AUM at 375 cr ( 20.7 %)
• Plan to touch this AUM to 1000 cr , in next 2- 3 years .
• Opex brought down to 8.44 % from 10.3 % last year
• Gross NPA – 4.8 %
• Western region contributes the largest share of the loan portfolio.
• 419 staff, parent company( Manappuram) can put in equity when required
• Average ticket size of a Home Loan is about 11.50 lakh and for the LAP segment, it stands at about 8.00 lakh.
Vehicle finance
• AUM doubled to 625 cr
• Added 26 new branches taking total to 76
• Leveraging gold loan channel for this
• Gross NPA – 2.7 %
• Planning to add 26 new branches this year
• 70 % preowned vehicles

Gross NPA at 0.5 % vs 2% last year
Net NPA at 0.3% vs 1.7 % last year
Return on assets at 4 % vs 5.4 % last year
Employees at 23886 vs 18993 last year ( 26 % increase)
Online gold loan account for 32 % of the book as against 12 % last year.
Planning to venture into new businesses like corporate finance, personal loans, MSMEs , project and industrial finance
27.28 cr spent on branding and advertising
NBFCs gaining an upper hand to banks as banking secotr
Bond yields and loan rates are on the climb ,will adversely affect margins
Limited opportunities to grow in gold loans, gold loan NBFCs are focusing on other areas
Obtaining gold loans is relatively easier to other loans , hence its rising popularity
Untapped markets of north and west india hold opportunity for gold loan penetrations
Gold loans have flexible terms , no need to pay EMI , can pay interest at end of tenure
Organized gold loan market to touch 3101 bn by 2020, growing 12-13 % CAGR
In August 2017, CARE Ratings has upgraded the long-term credit rating of Manappuram Finance Ltd (MAFIL) to CARE AA (double A) stable from CARE AA- (double A minus) stable
The Company also invested in ramping up safety of the lockers by installing IOT-based keyless e-lockers which offer multiple benefits including monitoring of the lockers by the customer from a remote location.

(Akansha17) #571

Mutual Fund holdings of Manappurum Finance has shown a decrease in the month of June’18

Source :

(DrArvind) #572

Trendlyne shows few differences.

(maheshkumar) #573

(Sarabjeet Singh) #574

Decent quarterly numbers from Manappuram

(us121) #575

Core Gold Loan business profitability is reduced.
However, Micro finance business has turned positive and has compensated reduced margin from gold business.

Need to understand the dynamics affecting gold loan margin, though loan business has increased…

(maheshkumar) #576

Good consolidated numbers

Now whenever gold segment will show some sort of profit than the consolidated result will jump a lot

Need to watch closely the gold segment

Valuations are decent at CMP

Let’s see after 1 -2 years when the real picture will emerge as the other segments will contribute more in n terms of percentage

(Ashwini) #577

Good loan assets is up about 20% YOY but not sure whey revenue growth in gold loans is so low YOY. As far as I know they don’t change their interest rates very often. Anyone know why?

(maheshkumar) #578

Mannapuram Finance: Gold Loans Forms 75% Of The Portfolio via @YouTube

Consolidated 20%CAGR guidance by ceo nandkumar
Also double digit growth in gold finance ove next few years

(nitin.verma) #579 in the above interview apart from the growth there is talk about listing of asirvad next year, also a small stake sale of the same ( towards the last few min of the interview)

(SD007) #580

(Gorthi) #581

Gold prices sink to 19-month low amid strong dollar

Can someone explains… Is low Gold Prices how it Impacts Manapparam business model… Will it be positive or Negitive??

(AvinashMb) #582

Gold prices should not impact Manapuram unless the fall is very rapid. Almost all loans have a 3 month tenure and are against LTV(Loan to Value) of 75% or lower. This means that loan amount will always be less than 75% of the equivalent gold value. This means that Manapuram is protected from small to medium falls in Gold prices. As long as the fall is not greater than 15-20% in 3 months they are safe as they have collateral value more than the loan + interest.