1,00,000 crore i.e. 25% of the loan book is in micro finance.
Fusion microfinance, another recently listed co with 10,000 cr of AUM gets a valuation of 5,000 crore.
~10000 cr.
figure is in million
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Getting a nod for IPO is a big positive in view of regulatory hammering going on banks and nbfc like iifl
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Rajeev Agrawal from
Doordarshi India dedicated fund
is Bullish on Manappuram
Financials can do quiet well in India
In India credit opportunity is huge
Indian equities have long runway
Recently presented Manappuram finance at Asian investing summit
Manappuram finance is pretty intersting
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I feel slowly and steadily people are realising the potential of Manappuram finance growing at 20% and still available at single digit PE
Last year PE was around 4-5
Now it’s 7-8
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Hi Maheshkumar,
Thanks for the share. Upon reviewing the book value of the company, I noted it to be approximately 1.6 times. Considering the nature of the business being in lending, I though that the price-to-book ratio would offer a clearer insight compared to the price-to-earnings ratio. Basis the current fig, it appears that the company is positioned on the higher end of valuation. However, I acknowledge the possibility of error in my assessment and would appreciate your insights on the matter.
2 Likes
The market values it based on book value because it’s a financial stock. However, I lean towards valuing it based on price-to-earnings ratio because as earnings rise, the price-to-earning ratio will decline more but book value won’t increase proportionally.
Manappuram stands out in this regard and may trade at 10 -15 PE
2 Likes
Whether we will get some shares of Asirvad during its IPO or we need to buy in IPO as shareholder of manappuram? What is scheme of arrangement?
Asirvad operates as a fully-owned subsidiary of MF. In my view, shareholders of Mannapuram Finance might not receive any shares from the IPO listing since it is not a demerger. Nevertheless, if you’re interested in the microfinance sector, you could consider applying for the IPO or acquiring shares from the open market. Please feel free to correct me if I’m mistaken
Disclosure: I have invested.
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How about the shareholder category discount for Manappuram shareholders? Do we come to know this only during RHP submission?
General information of current state of affairs. Applies to NBFCs Mannapuram & Muthoot.
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If Asirvad goes public, will Manappuram shares be discounted due to holding company discount?
Knee jerk reaction by market
Post rbi news
I feel may be tiny effect ,as those who want cash may go to non organised sector but they the interst rate is higher with non organised sector
Good opportunity for both short term and long term investors
Disc
Invested and added today
5 Likes
I think so too because in the larger scheme of things, Manappuram will benefit as this change effectively means that businesses that already have been adopting to technology quickly (like Manappuram) will be more compliant and also gain more of the organized business faster. Also, compared to Muthoot, Manappuram has lower % of cash loans. So all in all, there could be some uncertainty in the short term but the long term story is intact and I will add more during this fall as I did during the ED crisis.
Note - Invested in Manappuram and biased. Not a BUY/SELL recco as I am a still learning how the stock markets work 
6 Likes
Manappuram-Finance-Ltd—NBIE-Investor-Conference-Update—18-February-2024.pdf (744.5 KB)
good read
1 Like
4 Likes
Results Ashirwad
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Hey, could someone explain or link some resources that explain how and increase or decrease in gold prices affects a company that deals in gold loans?
please read this Rising trend of gold prices can have a positive impact on gold loans, ET BFSI.
basis google search would be useful
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I feel something strange looking at of Manappuram:
- It trades at single digit PE multiple and close to book value.
- It looks to be the safest lending operations with gold as collateral. Debt to equity of 3:1 suggests it is very conservatively leveraged.
- It is among leaders in gold loan financing for the under banked, and one of the emerging compitetor (IIFL Finance) is retired hurt after recent RBI direction not allowing IIFL to onboard new customers
- Since last few years, company is posting decent results , and competing with competition successfully
The growth if it comes can be funded by incremental profits. Aashirvaad Microfinance can fund its growth via IPO funding.
The company has excess cash of 3000 Cr that is spare, over and above of business operations/ Capital adequacy ratio.
I feel at current valuation , a massive buyback can add huge value to shareholders, including promoters who hold only 35% stake. Having said that, I have not seen any NBFC doing buyback in the past.
The price at which it trades, though not dirt cheap, makes me feel that:
- Market believes there are no growth prospects for the company or
- The financials are fudged and corrupt, or
- There is some serious hidden corporate governance issue or
- Microfinance is a time bomb that will explode one day
What are your views @sheekhuj
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https://www.bseindia.com/xml-data/corpfiling/AttachLive/10b95845-8d21-42a7-b71a-ea90d29159b4.pdf
Concall
Concall :
Expecting ROE of 20% for next year
Expecting robust growth in gold loan better than last year
Above 20 thousand no cash disbursement rule has no negative impact may be it is helping as small NBFCs are not ready for such change
MFI issues in Punjab and Rajasthan and Gujarat but in coming quarters things are improving
preparing for IPO
Vp nandkumar
The Board of Directors approved an interim dividend of Rs.1 per share of face value of Rs 2. V.P. Nandakumar, MD & CEO, Manappuram Finance said: “We are delighted to announce impressive growth in net profit for the full year. Our performance in non-gold segments such as microfinance, commercial vehicles and home loans is exceptionally encouraging. In our core business of gold loans too, we’ve achieved commendable increase over the previous fiscal, and I have no doubt that we will not only maintain the rate of growth but also improve upon it in the coming year.”
4 Likes