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.
“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.
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
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)
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
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
