Manappuram Finance Ltd closes at ₹ 151.60 with a Gain
of +1.60 % on 19-June-
2020 with formation of a Green Candle on Daily Price
Chart.
About the Company : Manappuram Finance is
engaged in a Non-Banking Finance Company (NBFC), which provides a wide range of
fund based and fee based services including gold loans, money exchange
facilities, etc.
The Company has
post Net Interest Income of ₹3384.83 Cr & Net Profit of ₹1467.75
Cr in FY 2020 and and expected to Post Net Interest Income of ₹ 3698.69 Cr & Net Profit of ₹ 1440.97 Cr in FY 2021 .
Valuations : The Company is now
Trading at X 0.50 of its Value. We have
valued the company with its last Financial Year 2020 earnings , which is now almost ~50 % Discount to its value & X 0.52 of its FY 2021 earning with a Discount of ~ 48%
.
Growth
Story : According to the management of the company,
most of gold loan customers have preferred not to opt for moratorium as they
realize the deferment of payments without waiver of interest would add to their
interest outflow. The total number of gold loans customers stood at 26.23
lakhs. Gold loan disbursement during the quarter at Rs 51912 crore compared to
Rs 40,304 crore in Q3 FY '20. The online gold loan book is growing, which
accounted for 48% of total gold loans and gained to 61% end April 2020.
Gold
loan business constitutes 67.3% of consolidated AUM. The gold holdings stood at
72.39 tonnes and the tonnage increased by 7.2% yoy year.
The
company has improved asset quality on standalone basis and the management of
the company expects 10% growth in the loan book for Fy2021.
Margin of Safety (1Yr Bond Yield: Value>1 ) is now 3.1 ,which is attractive. its Future Price with its FY 2021 earnings is ₹ 291.
Disclaimer : We are / may going to take exposure
shortly.
The
author tracks economic, behavioural and corporate tends, hoping to gauge good
avenues of return based on Fundamental Valuations of Stocks, a follower of EPV
method. You can reach me/us at |
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