In its Analyst/Investor Meet, Manappuram Finance Ltd. emphasised on-

1. progress risk of 8- 10% each year in gold loans with yields of 21-22%,

2. additional ramping-up belongings beneath administration share of non gold mortgage merchandise whereas enhancing their profitability,

3. chance of sustaining 18-20% consolidated portfolio progress and return on fairness, and

4. promoters remaining totally dedicated in operating operations and retaining the possession (refuted rumors of promoting stake).

In our view, higher buyer acquisition/retention exercise and a few assist from gold costs is required for envisaged progress in gold loans.

Continuance of sturdy micro finance establishment cycle and completion of great capital increase in Asirvad can be a key catalyst for the inventory, apart from sustained sturdy progress and profitability enchancment in non-fold mortgage and non-MFI companies.

On consolidated foundation, a fairly brisk AUM progress and sure continuance of average credit score cycle in non-gold mortgage portfolios would underpin 18-19% RoE supply over FY24-26.

However the current upmove, Manappuram nonetheless trades at an undemanding valuation of 5 instances value/incomes and one time value /adjusted e book worth on FY26 estimates.

We retain ‘Purchase’ and lift 12 million goal value to Rs 210.