Manappuram Finance

Stock Opportunities
1243

Specialised gold finance NBFCs like Muthoot, Manappuram Finance are the undisputed leaders in India’s gold financing business. Gold Finance NBFCs - Disruption Inevitable, But Long Term Story Intact: Systematix

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Upbeat Outlook For Non-Bank Financiers | V.P. Nandakumar Of Manappuram Finance Upbeat Outlook For Non-Bank Financiers | V.P. Nandakumar Of Manappuram Finance | News News, Times Now

Shares of gold loan financers Manappuram Finance and Muthoot Finance rose as Morgan Stanley and CLSA upgraded the stocks. Why Morgan Stanley, CLSA Are Betting On Manappuram, Muthoot

upbeat on Manappuram due to

  1. diversification playing out
  2. multiple research reports buy call including Morgan Stanley’s overweight rating with 150 target
  3. very low price to book of 1.1 and price to earning of 6.8 according to current quarter eps of 4.8
  4. increasing yield
  5. turnaround in Microfinance
  6. increase in gold price
  7. management’s ability and past record in coming out of all diversities eg demonetisation,covid ,competition,yields issue
  8. free cash flow
  9. consistent good dividend
  10. Ashirwad Microfinance valuations not priced in current valuations
  11. crossing the moving averages
  12. 50% below it’s all time high
  13. good combination of technical and fundamental chart
  14. Nbfc as a sector is moving up with possible rerating on board with expectations of good growth in next 2 years

Muthoot has its separate muthoot finance service

But Manappuram has Ashirwad in its valuations ,it’s not separate like muthoot
But still Manappuram has lower price to book than muthoot

I feel opposite should happen and Manappuram should get more valuations than muthoot

Just my 2 cents

20 Dec

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