Manappuram Finance Limited Research Report

Manappuram Finance Limited Research Report

Industry

Market Price

Recommendation

Target

Time Horizon

NBFC

90.80

Buy

127

1 Year

 

Q4 FY 2022 Review

Manappuram Finance limited reported net revenue of ₹1,481.35 crores for the quarter ended March 31, 2022, compared to ₹1,622.32 croresfor March 31, 2021.Profit After Tax was ₹260.95 croresfor the quarter ended March 31, 2022, as compared to ₹468.35 crores, during the corresponding quarter of the previous year respectively.

 

Manappuram Finance Limited - Investment Summary

CMP (₹)

90.80

52 Week H/L

88.1/224.5

Market Cap (crores)

₹7,685

Face Value (₹)

2.00

Promoter Holding (%)

35.06

Non-Promoter Holding (%)

64.94

Total (%)

100.00

Book Value

₹98

EPS TTM

₹15.70

 

Overview

  • Manappuram Finance Limited has 5,000 branches with an employee strength of more than 40,000 on a consolidated basis.

  • Manappuram was the first company to start online gold lending in FY 2015.

  • It is the second-largest listed player in the gold loan segment with a consolidated AUM of ₹303 billion.

  • The Board of directors has declared a dividend of ₹0.75 per share for FY 2022.

 

Manappuram Finance limited Investment Summary

 

Beta: 1.05

Alpha:-19.45

Risk Reward Ratio: 1.73

Margin of Safety: 26%

 

Manappuram Finance Limited - Quarterly Summary

Quarterly (INR in crores)

Mar-22

Dec-21

Sep-21

Jun-21

Mar-21

 Income from Operations

1,481.35

1,484.45

1531.92

1563.3

1,622.32

 Finance costs

494.83

531.07

492.37

493.1

523.92

 Net Interest Income

986.52

953.38

1,039.55

1,070.20

1,098.40

 

 

 

 

 

 

 Other Income

9.96

22.4

22.5

10.44

7.93

 Total Income

996.48

975.78

1,062.05

1,080.64

1,106.33

 

 

 

 

 

 

Fees and Commission Expenses

4.27

7.74

4.76

9.25

8.22

Impairment on Financial Instruments

151.37

104.78

107.77

122.25

106.59

Employee Benefits Expenses

301.08

305.68

287.8

230.45

233.44

Depreciation and Amoritzation

58.14

55.65

41.41

42.78

43.93

Other Expenses

127.68

153.75

125.28

89.54

92.07

 EBT

353.94

348.18

495.03

586.37

622.08

 

 

 

 

 

 

Tax Expenses

92.99

87.17

125.15

149.42

153.73

 PAT

260.95

261.01

369.88

436.95

468.35

 

Business

  • Manappuram Finance Limited was incorporated on July 15, 1992, in Thrissur, Kerala.

  • The company is a non-deposit-taking Non-Banking Finance Company.

  • The company provides a wide range of fund-based and fee-based services including goal loans, money exchange facilities, etc.

  • The company has four subsidiaries: Manappuram Home Finance Limited, Manappuram Insurance Brokers Limited, Asirvad Microfinance Limited, and Manappuram Comptech and Consultants Limited.

  • In the past three years, the manappuram group has diversified into other businesses such as microfinance, Vehicle Finance, loan against property and affordable housing finance, and insurance business.

  • Business segment updates (Q4FY2022):

    • Gold Loan Business:

      • Gold loan AUM stood at ₹202 billion decreased by 1.4% Q-o-Q basis and increased by 5.7% Y-o-Y basis.

      • Gold Holdings stood at 68 tons down by 2.9% Q-o-Q basis and up by 4% Y-o-Y basis.

      • PAT for FY 2022 was ₹1,304 crores.

    • Micro Finance Business (MFI):

      • Asirvad Microfinance Limited’s AUM stands at ₹7,002 crores, down by 1.2% Q-o-Q basis and up by 1.7% Y-o-Y basis.

      • Collection efficiency from MFI business in Q4FY2022 stood at 99% and disbursement during the quarter was ₹1,124 crores.

    • Vehicle Finance Business:

      • The Company reported an AUM of ₹1,643 crores, up by 8.8% & 56.1% Q-o-Q and Y-o-Y basis.

      • Collection efficiency for the quarter was 104% as compared to 103% in Q3FY2022.

    • Home Loan Business:

      • Its total AUM was ₹845 crores, up by 3.5% & 26.91% Q-o-Q and Y-o-Y basis.

      • Collection efficiency for the Q4FY2022 was 109%, compared to 100% in Q3FY2022.

      • It operates from 73 branches and reported a profit of ₹7.2 crores during the year.

  • Out of the total revenue, 77% has been generated from Gold & others, and 23% from Microfinance in FY 2022 compared to 83% and 17% in FY 2021, respectively.

Manappuram Finance limited Revenue Break-up

 

Manappuram Finance Limited - Revenue Trend

Topline and Bottomline trend (crores)

Manappuram Finance Llimited Topline and Bottomline trend

 

Manappuram Finance limited EBT Margin

 

Manappuram Finance limited shareholding Pattern

 

Manappuram Finance Limited - Ratio Analysis

 

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

ROE

18%

23%

28%

26%

17%

ROA

1.79%

1.84%

2.46%

4.09%

4%

Capital Adequacy Ratio

26.98%

23.27%

21.41%

29.02%

31%

Net Yield

24.01%

23.28%

25.30%

24.92%

20.70%

GNPA

0.69%

0.55%

0.88%

1.92%

3%

NNPA

0.33%

0.32%

0.47%

1.53%

2.70%

 

Manappuram Finance Limited - Financial Overview

Manappuram Finance Limited - Profit and Loss Statement (₹ in crores)

 

2018

2019

2020

2021

2022

Interest Income

3,354

4,046

5,280

6,190

5,840

Dividend Income

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