Manappuram Finance Ltd (MANAPPURAM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

M & M Fin. Serv.

Poonawalla Fin

Capri Global

IIFL Finance

Manappuram Fin.

Chola Financial

Five-Star Bus.Fi

SBFC Finance

Tata Inv.Corpn.

Bengal & Assam

Authum Invest.

Why is Manappuram Finance Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.27%

Poor long term growth as Net Sales has grown by an annual rate of 8.42% and Operating profit at 2.20%

With a growth in Net Profit of 69.68%, the company declared Very Positive results in Mar 26

PBDIT(Q) Highest at Rs 1,736.64 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 66.44%
PAT(Q) Highest at Rs 403.96 cr.

With ROE of 6.3, it has a Very Expensive valuation with a 1.7 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 38.60%, its profits have fallen by -17.5%

High Institutional Holdings at 36.2%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 38.60% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Manappuram Fin. should be less than 10%
Overall Portfolio exposure to Non Banking Financial Company (NBFC) should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Non Banking Financial Company (NBFC))

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Manappuram Fin. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Manappuram Fin.

38.6%

1.22

31.63%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.42%

EBIT Growth (5y)

2.20%

Net Debt to Equity (avg)

3.60

Institutional Holding

36.20%

ROE (avg)

13.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.67

EV to EBIT

15.57

EV to EBITDA

14.68

EV to Capital Employed

1.16

EV to Sales

8.25

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

7.43%

ROE (Latest)

6.25%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company

PBDIT(Q)

Highest at Rs 1,736.64 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 66.44%

PAT(Q)

Highest at Rs 403.96 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 6,148.86 cr

NET SALES(Q)

Highest at Rs 2,613.83 cr

PBT LESS OI(Q)

Highest at Rs 552.06 cr.

EPS(Q)

Highest at Rs 4.30

-4What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 3.60 times

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Here's what is working for Manappuram Fin.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 552.06 cr has Grown at 380.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 114.92 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 403.96 cr has Grown at 295.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 102.04 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,736.64 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 66.44% and Grown

each quarter in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs 403.96 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 2,613.83 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 552.06 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 4.30

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 6,148.86 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Manappuram Fin.

Debt-Equity Ratio - Half Yearly

Highest at 3.60 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 11.75 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income