Manappuram Finance: A Strong 'Buy' for Investors.

Manappuram Finance, a leading finance and non-banking financial company (NBFC) in the midcap segment, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as no surprise, given the company's strong long-term fundamental strength and consistent positive results.
With an average Return on Equity (ROE) of 20.30%, Manappuram Finance has proven to be a solid performer in the finance industry. In fact, the company has declared positive results for the last 5 consecutive quarters, with its net sales reaching a high of Rs 2,156.70 crore and PBDIT at Rs 1,481.32 crore. The operating profit to net sales ratio is also at a high of 68.68%, showcasing the company's efficient operations.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since 29-Nov-23, generating a return of 1.2% since then. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

In terms of valuation, Manappuram Finance has a fair valuation with a price to book value of 1.3 and a ROE of 17.6. However, the stock is currently trading at a premium compared to its historical valuations. Despite this, the company's profits have risen by 53.4% in the past year, resulting in a low PEG ratio of 0.1.

Moreover, the stock has high institutional holdings at 39.33%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals. This also reflects the confidence of institutional investors in Manappuram Finance's future growth potential.

In terms of market performance, Manappuram Finance has outperformed the market (BSE 500) with a return of 37.59% in the last year, compared to the market's return of 16.72%. This further solidifies the company's position as a market-beating performer.

Overall, with its strong fundamental strength, consistent positive results, and market-beating performance, Manappuram Finance is a solid 'Buy' for investors looking for a reliable and profitable investment in the finance industry.