Manappuram Finance Ltd – Stock Analysis
Business Overview
- Manappuram
Finance Ltd (BSE: 531213) or MAFIL is India’s one of
the leading
gold loan NBFC, incorporated in 1992.
- This non-banking financial company (NBFC) situated in Valapad, Kerala state Manappuram has over 4622 branches
across 28 states, a staff strength of over
27500+ people with assets under management (AUM) of Rs. 25230 cr - Manappuram Finance, Ltd operates as a non-banking finance company., formerly known as Manappuram General Finance & Leasing, Ltd , which provides general finance and leasing services. MFL’s product and services include Online Gold Loan, Gold Loan, Foreign exchange services & Money Transfer, SME Finance, Vehicle Loan, Tour & Travel Loan, Personal Loan, Hospitality Loan, Industrial Loan, Micro Home Finance, Teachers Loan Division, Healthcare Industry Loan and other Loans & Services.
- Company operates in three segments: Asset
Finance, Gold loan and Other loans,
and Fee-based activities
- Earlier company focused on gold loans, so MFL was
prone to the concentration risk. Financial sector regulators in India have been
expressing concern over the concentration risk inherent in the mono-line
business model.
- To alleviate these concerns, the company initiated bold moves to become a multi-product company with a diversified presence across new business areas like Microfinance, vehicle and housing finance and SME lending.
Financial Highlights
* Revenue Las t 5 year increases From 2369 Cr to 5465 Cr ( Increase 2.5 Times)
* Net Profit last 5 year increases from 353 Cr to 1468 Cr ( Increase 4.15 times)
* Return on Equity last 5 Years consistently increases from 13.18 % to 29.02 % ( Increase 2.2 times)
* Return on Asset last 5 Years increases from 12.64 % to 16.2 % ( Increase 1.3 times)
* Return on Equity last 5 Years consistently increases from 13.18 % to 29.02 % ( Increase 2.2 times)
* Reserves last 5 Years consistently increases from 2590 Cr to 5545 Cr ( Increase 2.14 times)
* Last 3 year no share capital diluted.
* Net Profit last 5 year increases from 353 Cr to 1468 Cr ( Increase 4.15 times)
* Return on Equity last 5 Years consistently increases from 13.18 % to 29.02 % ( Increase 2.2 times)
* Return on Asset last 5 Years increases from 12.64 % to 16.2 % ( Increase 1.3 times)
* Return on Equity last 5 Years consistently increases from 13.18 % to 29.02 % ( Increase 2.2 times)
* Reserves last 5 Years consistently increases from 2590 Cr to 5545 Cr ( Increase 2.14 times)
* Last 3 year no share capital diluted.
: My Take :
> Manappuram Finance Ltd’s performance for last 5 years was robust.
> Given the long term
favorable industry dynamics considering sustainable growth
potential, retail
focused NBFC, with consistent strong financial performance and
growth on the back of
financial discipline By the next few years, it expects to emerge as the largest player in the gold loan sector
in Pan
India and expand
its business domain beyond India.
>With its strong operating efficiency, adequately
capitalized and high yielding business, the company is expected to deliver
strong loan growth with improved margins in the coming quarters
> Given the long term
favorable industry dynamics considering sustainable growth
potential, retail focused NBFC, with consistent strong financial performance and
growth on the back of financial discipline By the next few years, it expects to emerge as the largest player in the gold loan sector in Pan India and expand
its business domain beyond India.
potential, retail focused NBFC, with consistent strong financial performance and
growth on the back of financial discipline By the next few years, it expects to emerge as the largest player in the gold loan sector in Pan India and expand
its business domain beyond India.
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