MANAPPURAM - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.1

📊 Core Financials Analysis

Profitability

PAT dipped slightly from ₹414 Cr to ₹392 Cr — a 7.94% decline, but still reflects strong earnings.

EPS: ₹20.5 — solid for its price range.

Return Metrics

ROE: 16.0% — healthy shareholder return.

ROCE: 13.1% — decent capital efficiency.

Debt Profile

Debt-to-equity: 2.34 — high, but typical for NBFCs; manageable if asset quality remains strong.

Cash Flow: Not explicitly stated, but consistent profitability and diversified lending suggest stable operating cash flows.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 14.3 Undervalued vs. industry average of 24.0 — attractive entry point.

P/B Ratio ~2.1 Reasonable given ROE and growth potential.

PEG Ratio 1.34 Fair valuation — not deeply undervalued, but growth-adjusted pricing is acceptable.

Intrinsic Value Likely close to current price Supported by valuation multiples and earnings base.

🧠 Business Model & Competitive Advantage

Manappuram Finance Ltd. is a diversified NBFC with a strong foothold in

Gold Loans: Core business, contributing ~79% of revenue — resilient and high-margin segment

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Microfinance: Through Asirvad Microfinance — expanding rural reach and financial inclusion

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Vehicle & Home Finance: Focused on Tier 2–4 cities, targeting underserved segments

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Risk Management: Improved asset quality, reduced NPAs, and enhanced credit monitoring systems

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Funding Access: Diversified sources and strong capitalization (CRAR ~30.91%) ensure liquidity and growth capacity

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Its competitive edge lies in brand trust, rural penetration, and diversified lending, which help mitigate sector-specific risks.

📈 Technical & Sentiment Indicators

RSI: 63.9 — approaching overbought zone, short-term caution advised.

MACD: Positive — bullish momentum.

Volume: Slightly below weekly average — suggests mild consolidation.

DMA 50/200: Price above both — confirms uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹265–₹280 — near DMA levels and below RSI peak.

Long-Term View: Manappuram is a well-managed NBFC with strong fundamentals and a diversified portfolio. Suitable for long-term holding, especially for investors seeking exposure to gold-backed lending and rural credit growth. Dividend yield of 1.20% adds modest income support.

Let me know if you'd like a peer comparison with Muthoot Finance or Cholamandalam Investment to refine your strategy.

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www.sharescart.com

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dcfmodeling.com

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www.manappuram.com

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