Manappuram Finance Q3 FY21 First Cut - 'Better than expected' - YES Securities

- A large 26% earnings beat - reported PAT at Rs4.83bn v/s estimated at Rs3.83bn

- NII came in 8% higher than forecasted on both higher interest income (suggesting better AUM growth) and lower interest outgo (reflecting the cost of funds reduction)

- A tight leash on opex continues - was flat qoq and lower 5% yoy

- Surprisingly, the credit cost was significantly lower (more clarity here from PPT will help in understanding the quality of earnings beat)

While the stock could react positively to the results, more needs to be understood on two fronts, tonnage growth in gold loans and collection efficiency/stress manifestation in MFI and CV book. Valuation is undemanding at 1.2x FY23 P/ABV.

Shares of MANAPPURAM FINANCE LTD. was last trading in BSE at Rs.156.95 as compared to the previous close of Rs. 153.35. The total number of shares traded during the day was 454209 in over 5393 trades.

The stock hit an intraday high of Rs. 159.65 and intraday low of 154.2. The net turnover during the day was Rs. 71158303.

Source : Equity Bulls

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