Manappuram Share Price reaches almost 7%

Manappuram share price grew by almost 7 per cent in Tuesday’s trading session.

Manappuram Finance (MGFL) reported PAT growth of 205 per cent Year on year at Rs 192 crores which was led by healthy NII growth backed by strong advance growth as well as improvement in NIMs. MGFL, AUM growth for Q2FY17 was at 42 per cent at Rs 14,500 crores, management maintained its guidance to take non gold portfolio to 25 per cent (currently 15 per cent) of AUM by FY18.

Manappuram’s NII during the quarter was up by 78 per cent at Rs 543 crores led by 42 per cent Year on year AUM growth and improvement in margins by 380bps Year on year to 15.8 per cent. With 16 per cent Year on year increase in operating expenses as against 78 per cent Year on year increase in NII resulted in decrease in opex to AUM to 6.9 per cent from 8.2 per cent Year on year (7.3 per cent QoQ).

Manappuram’s cost of funds declined by 100bps Year on year to 10.1 per cent due to lower cost of funds from banks as well as mutual funds which resulted in increase in margins. Asset quality improved with auctions came down to Rs.23 crores in Q2 FY17 as against Rs.37 crores in Q1 FY17.

Manappuram believes that the de-monetization scheme will lead Unorganized gold loans to shift towards the organized segment. Also, 2/3rd of customers have already moved to online gold product facility making the demonetization impact negligible. The impact of demonetization is expected to be visible in Q3 FY17 for atleast for 10-12 days which should impact both disbursals (although 50 per cent are disbursed through NEFT/online) as well as collections.

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Manappuram share price is currently trading at Rs 77.25, up by 6.85 per cent. Get the most important support and resistance levels of the company at Manappuram share price forecast.