Manappuram Finance Ltd rating upgraded to 'BB-/B', Outlook Stable

On Oct. 25, 2021, S&P Global Ratings raised its long-term issuer credit rating on Manappuram Finance Ltd. to 'BB-' from 'B+'. The outlook is stable. We also affirmed the 'B' short-term issuer credit rating on the India-based finance company.

The gold-based lending business of Manappuram Finance Ltd. has proved to be an effective counterbalance to the weakness in India's microfinance segment.

In our view the India-based finance company will continue to outperform its non-gold nonbank finance company (NBFC) peers in terms of asset quality and profitability over the next 12 months. This is notwithstanding a sharp correction in gold prices in recent months and economic disruptions due to devastating second wave of COVID-19 infections.

The stable outlook reflects our expectation that Manappuram will largely maintain its financial profile over the next 12 months, supported by improvement in economic conditions in India.

Shares of Manappuram Finance Limited was last trading in BSE at Rs. 199.85 as compared to the previous close of Rs. 199.65. The total number of shares traded during the day was 263021 in over 2688 trades.

The stock hit an intraday high of Rs. 202.40 and intraday low of 189.50. The net turnover during the day was Rs. 51423962.00.

Source : Equity Bulls

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