Manappuram Finance

Stock Opportunities
1186

Q4FY22 Concall Notes

  1. Had mentioned about optimism in the economy in last concall, but the recovery has not happened yet.
    1. Gold loan & MFI did not grow this quarter.
  2. There is price war going on in the gold loan market.
    1. They have decided to stick to 21% blended yield.
    2. Some players have taken their business.
    3. Management believes that gradually the players will realize that these yields are not sustainable and price war would end.
    4. There is easy money available in the market which is providing short term pressure in the business as competition is going aggressive.
  3. Over Rs.2 lakhs ticket size constitutes 33.0% of our AUM
  4. New MFI regulation: Current yields for MFI: target of ROE of 20%. Yield of 24% currently. 10.3% cost of borrowing.
  5. People who want short term loan will not waste 2 days at a bank as they might be daily wage people.
    1. The competition is among NBFCs
  6. The demand from lower pyramid has not come back might come in next quarter.
  7. Targeting ROA 5% and above
  8. MFI business has affected the ratios this time
  9. Growth target of 20%
  10. Considering tp raise capital for MFI but parent is also there for backup
  11. Yields will be above 20% going forward
  12. No increase in branches for parent company.
    1. Application for 300 branches to RBI
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