Motilal Oswal recommended Neutral rating on Manappuram Finance with a target price of Rs 240 in its research report dated March 21, 2025.
The article from Moneycontrol discusses Motilal Oswal's analysis of Manappuram Finance, maintaining a 'Neutral' rating with a target price of Rs 240. The report highlights that Manappuram Finance's Q4 FY24 performance was in line with expectations, with a 19% year-on-year increase in profit after tax to Rs 5.4 billion, driven by a 20% growth in assets under management (AUM) and a 22% rise in net interest income. However, the company experienced a slight decrease in net interest margins by 10 basis points to 13.5%. The growth was primarily fueled by the non-gold segments, which now constitute 45% of the AUM, with microfinance and vehicle finance showing significant expansion. Despite these positive developments, concerns remain about the sustainability of growth in the gold loan segment due to competitive pressures and potential regulatory changes. The report also notes that while the company's return on assets (RoA) and return on equity (RoE) are expected to remain stable, the stock's valuation at 1.1x FY26E P/BV is considered fair, leading to the neutral stance.
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