Manappuram Finance Q1 Review – Valuations Price In Any Positives Ahead: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Manappuram Finance Ltd.’s vulnerability to competition (organised/non-organised) and Covid-19 continues to reflect in sluggishness in gold loan (weak trends since Q3 FY21 with sharpest decline of 13% QoQ in Q1 FY22) and gold tonnage (shrinkage since Q4 FY20; 4% QoQ decline: Q1 FY22) since past a year.

While Manappuram Finance attributes this fall and asset quality volatility (elevated auctions: Rs 15 billion) to product structure (three-month tenure) and expects faster recovery ahead, challenges stand acute on non-gold side (micro finance institution non performing asset:3.6%/ housing finance NPA:7%/ vehicle finance gross non performing asset:6%).

Q1 FY22 earnings stood broadly in-line but tepid net interest income, higher provisions restricted profit after tax (7%QoQ decline).

Click on the attachment to read the full report:

Prabhudas Lilladher Manappuram Q1FY22 Result Update.pdf


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