Q3 FY21 Result Update - Manappuram Finance - YES Securities

(Rating: BUY, TP: Rs 230, Upside 47.4%)

- Better than expected operating show; incremental provisions may be required in non-Gold businesses

- We project 12-14% consol. AUM growth for FY22/23 even with modest growth in the mainstay gold loans business.

- Normalization of credit cost in MFI & CV businesses would improve overall RoA to 6%+. Earnings CAGR would likely be 15-20% over FY21-23.

- Valuation is undemanding at 1.2x FY23 P/ABV considering healthy earnings growth, strong profitability and robust capitalization. We retain BUY and 12m TP of Rs230.

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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