Manappuram General Finance - Q3FY12 Result Update - Emkay

Reco: HOLD
CMP: Rs 59
Target Price: Rs 65

Results inline; price led growth a concern

- MAGFIL results inline with expectation with NII at Rs4.3bn and net profit at Rs1.6bn. The growth driven by strong advance growth and broadly stable NIM's at 13%

- AUM growth strong at 90%yoy supported by 63%yoy increase in customer base in commensurate with 53%yoy increase in branch network

- Despite aggressive additions of 1345 branches over last five quarters, the gold stock additions have seen consistent decline from 9.4MT/qtr to 4.3MT/qtr

- MAGFIL continue to grow at a healthy pace, however sustainability of the same amid rising competition and any regulatory change in NPA recognition to 90dpd is under question.

Source : Equity Bulls

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