Manappuram Finance

Hi @arjunbadola
I am curious on your comment that technology has improved and is impacting Manappuram’s market share, can you elaborate on that?

I understand, borrower still has to go to the branch to pledge the gold. Fintechs tried to offer at home gold loans, but trust deficit allowed traditional players to thrive.

NBFCs like IIFL, Shriram etc and many banks have entered this space in the last 3 years and both Manappuram and Muthoot lost market share, but now, most of the banks (specially SFBs) are falling back as the opex in this business is a dedicated expense and relatively higher vs other personal loans. Further, the recent spurt in gold NPAs has turned out to be another sour point.

I dont think technology has really impacted this business, only the backoffice processing has gotten faster, which is an industry wide phenomenon.


High gold price , softening competetion from bank , cheap valuations and strong financial sector growth - positives for manappuram


Manappuram has reasonable technology also so many of their gold loans are digital


This looks like a very exciting initiative.
It covers 2 major pain points for gold loan industry:

  1. The opex in evaluation is a considerable expense for the lender
  2. The borrower has to spend considerable time physically at the branch for disbursement.

“With GoldPe | APM, they can get their gold loan instantly, safe and secured within less than 8min & 24x 7. Customers can deposit their gold in the machine, which then uses AI technology and Gold / Metal Analyzer to assess the Purity, Quality and Weight of the gold. The AI system will weigh the stone and gold weight separately, and based on this assessment; the machine instantly disburses the loan amount”


Pardon my naivety, wouldn’t performing KYC of customers require manual intervention? AFAIK the KYC docs have to be verified by a person. Just curious if/how the APM automates this aspect.

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Not necessarily, in some cases KYC is done in an automated fashion and I reckon pretty soon its going to become the norm. Case in point Banks: How Banks are using RPA to Comply with KYC Guidelines

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Big things ahead for Manappuram Fin My analysis suggests that it may report revenue of 2200 CR,profit of 550 cr . Asirvad is stepping up, With increasing demand, they’re set to spearhead the growth


“HDFC bank enabling 200-300 branches every quarter for gold loans. They have been pushing gold loans majorly”


Superb Result by Mana for the quarter ended September 30,2023, posted highest revenue and net profit.
-Net Profit at ₹561 cr vs ₹409.5 cr (YoY)/₹498 cr (QoQ)


Conference call q2


Non-compliance with certain provisions of the
“Non-Banking Financial Company -

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insider trading


IIFL Finance emerges as second largest gold loan NBFC - Daily Pioneer


I feel there’s a big opportunity in the gold market and microfinance. Companies that perform well will succeed, increasing value for investors. We’ll see how this unfolds over time. Rising gold prices will be an additional advantage.

This is an exciting period for Manappuram Finance. Currently, the market is skeptical about its growth and sustainability, leading to throwaway valuations ,almost at book value ,means no value for brand ,business ,customer acquisition,long history,diversification ,everything free

Let’s see next few quarters


Some updates from vp nandkumar


Why is the opex cost high compared to muthoot finance ?


I suppose its due to their diversification in microfinance.
Operating margin for Muthoot is in mid 40s, Manappuram in mid 30s and IIFL in mid 20s

Muthoot Finance (FY23)

  • Gold loans: 98.4%
  • Non-gold loans: 1.6%

Manappuram Finance (FY23)

  • Gold loans: 58.4%
  • Non-gold loans: 41.6%

Any comparison available with IIFL?

for standalone also OPEX is high at 7% standalone is only gold loans

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the percentages of expenses for half yearly of 2023 STANDALONE minor mistakes may be there

my thesis -
manappuram has higher employee cost due to lower AUM or operational inefficiencies
in the future this might get corrected so that it can effectively compete