While the valuation does look attractive and the near-term picture can improve riding on the non-gold loan businesses, Manappuram is basically turning into a riskier business model
PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights Manappuram’s stock has done reasonably well in the past couple of months Growth challenges persist in gold loans and unlikely to reverse Large non-gold book growing fast Risk-adjusted return to deteriorate as non-gold book could face relatively more asset quality issues Undemanding valuation, good trading bet Manappuram Finance (CMP: Rs 130.5, Market Cap: Rs 11,045 crore) had a great run in the past couple of months and is now almost at its 52-week high. Even after this rally and its relative outperformance against larger...