Manappuram Finance

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


Asirvad IPO may come in Mid-March to early April

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Interested in hearing your insight on Manappuram:

  1. Can Manappuram sustain growth in gold loans amidst increasing competition?
  2. Will they uphold asset quality as their non-gold portfolio expand rapidly?
  3. Given the operational intensity of gold loans, can competitors keep up, or will they go away gradually?
  4. Management claim that two-thirds of gold loans are still held by unorganized players, suggesting ample room for growth. How accurate is this ?
  5. Will the RBI permit further branch openings and approve their IPO?
  6. where will gold price go from here 1500-2000 dollars or 2000-2500 dollars
  7. can digitalisation and AI take over their business
  8. can non gold loan profit cross gold loan profit as they are growing fast and profits are high
  9. 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

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