Manappuram Finance share price: Support on the counter could be seen at Rs 109, followed by Rs 108 and Rs 100 levels, analysts said. Shares of Manappuram Finance rebounded on Thursday after witnessing a steep fall in the previous session. The stock climbed 4.65 per cent to settle at Rs 119.25 over a previous close of Rs 113.95. The recovery in the share price came after the company, in an exchange filing, shared an update on the Enforcement Directorate's ongoing search at its registered office.
"This is mainly with reference to the deposits accepted by Manappuram Agro Farms (MAGRO), an erstwhile sole proprietor of the concern of the promoter, prior to 2012, which were subsequently repaid except for the deposit of Rs 9.25 lakh which could not be repaid by them despite MAGRO’s continuous efforts. In this regard, we would like to inform you that the company is cooperating with the ED's investigation team by providing the required details sought by them. We will be able to provide more information on completion of the search," Manappuram stated.
Also, BSE sought clarification from the company on the share price movement. The company, in response, said, "There is not any material information other than stated above in the possession of the company which might be cause of increase in volume of the security of the company."
Support on the counter could be seen at Rs 109, followed by Rs 108 and Rs 100 levels, analysts said.
Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One, said, "Currently, the stock has immediate support at 200-SMA (Simple Moving Average), placed around Rs 109, followed by the Rs 100 mark. On the higher end, relief could be seen only above the Rs 125 zone in the comparable period."
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has been overall in a gradual rising trend and taking support near the 200-DMA (Day moving average), where it has shown a positive bias. We anticipate an upward rise in the coming days. The RSI (Relative strength index) indicator has also indicated a reversal from the oversold zone to signal a buy, making the chart look attractive. We suggest buying and accumulating this stock for an upside target of Rs 133 while keeping the stop loss at Rs 115."
Ravi Singh, Vice-President and Head of Research at Share India, "In the latest quarterly results, the company presented a good set of numbers where revenue improved 15 per cent and profit after tax (PAT) surged by 50 per cent on year-on-year (YoY) basis. Return on equity is reasonable at 17 per cent. In terms of valuation, it is looking attractive as the stock is currently trading at 1x its book value."
AR Ramachandran from Tips2trades said, "Manappuram Finance now has strong support at Rs 108 on the daily charts. Investors should buy only if a daily close is above the resistance of Rs 118.75 for higher targets of Rs 129-134 in the near term."
VLA Ambala, Research Analyst at Stock Market Today, said, "Rs 100 may act as psychological support. A long position can be initiated in the range of Rs 100 to 110 with a target of Rs 125/135/150 and a stop loss of Rs 97."
Meanwhile, Indian equity benchmarks traded higher today, led by strong buying in financials, banks and metal stocks.