Buy Manappuram Finance, target Rs 110: Phillip Capital (India)
Buy Manappuram Finance at a price target of Rs 110.
Phillip Capital (India) has a buy call on Manappuram Finance with a target price of Rs 110.
The current market price of Manappuram Finance is Rs 104.05.
Time period given by the brokerage is one year when Manappuram Finance price can reach the defined target.
Investment rationale by the brokerage: MGFL’s operational performance was ahead of our expectations led by higher-than-expected yields offsetting slower growth in gold loan. Improvement in asset quality in its microfinance portfolio and higher profitability in its microfinance subsidiary were positives. At the current market price, the stock trades at 1.6x FY20 BV. We maintain our BUY rating on the stock with a revised price target of Rs 110 (valuing it at 1.65x) vs. Rs 100 earlier.
The current market price of Manappuram Finance is Rs 104.05.
Time period given by the brokerage is one year when Manappuram Finance price can reach the defined target.
Investment rationale by the brokerage: MGFL’s operational performance was ahead of our expectations led by higher-than-expected yields offsetting slower growth in gold loan. Improvement in asset quality in its microfinance portfolio and higher profitability in its microfinance subsidiary were positives. At the current market price, the stock trades at 1.6x FY20 BV. We maintain our BUY rating on the stock with a revised price target of Rs 110 (valuing it at 1.65x) vs. Rs 100 earlier.
