Valuation point well-taken. An NBFC cannot replace a bank. A bank is a bank for a reason. The value will get unlocked once the micro-finance entity gets demerged. MFL is still undervalued and with price changes perception.
Expecting reasonable gold growth in quarter 4
Ashirwad Microfinance IPO expectation march /april
Overall 18-20% growth expectations
Non gold 30% growth expectations
Gold 8-10% annual expectation
I feel if such growth continues 10% gold and 30% non gold then in 6-7 years non gold profit will be more than gold loan profit
Interested in hearing your insight on Manappuram:
- Can Manappuram sustain growth in gold loans amidst increasing competition?
- Will they uphold asset quality as their non-gold portfolio expand rapidly?
- Given the operational intensity of gold loans, can competitors keep up, or will they go away gradually?
- Management claim that two-thirds of gold loans are still held by unorganized players, suggesting ample room for growth. How accurate is this ?
- Will the RBI permit further branch openings and approve their IPO?
- where will gold price go from here 1500-2000 dollars or 2000-2500 dollars
- can digitalisation and AI take over their business
- can non gold loan profit cross gold loan profit as they are growing fast and profits are high
- when can we consider it as a well diversified company
The market has numerous doubts , hence Manappuram’s valuations are appealing and undervalued.
Manappuram has proved itself consistently navigated through turbulent times.( demonitsation ,covid ,fluctuating gold prices ,ED raid )
Also they are the first one before muthoot to diversify in non gold aggressively ,later muthoot realised its importance and now they are also trying