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Manappuram Finance Ltd. Stock Analysis

Mid Cap
Evaluated by 4654 users | BSE: 531213 | NSE: MANAPPURAM |
Finance - NBFC
Manappuram General Finance & Leasing Limited (MAGFIL), a non banking finance company promoted by the Manappuram Group was established in 1992, it has its headquarters at Valapad, Thrissur District, Kerala. The company went public in August 1995 and has grown substantially since then. The...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Manappuram Finance Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'07Mar'08Mar'09Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)42.578.81612,1001,9862,3603,3853,4214,1805,465
Y-o-Y Gr. Rt.-85.2%104.4%1204.6%-5.4%18.8%43.4%1%22.2%30.8%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
0.480.960.852.693.234.198.988.0211.2517.52
Y-o-Y Gr. Rt.-100%-11.5%216.5%20.1%29.7%114.3%-10.7%40.3%55.7%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
1.121.954.6629.6231.332.7939.9344.9853.5867.3
Y-o-Y Gr. Rt.-74.1%139%535.6%5.7%4.8%21.8%12.7%19.1%25.6%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)8.399.716.233.942.422.915.444.235.096.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Manappuram Finance Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income71.5%22.4%17.3%30.8%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
49.1%40.2%25%55.7%
Book Value per Share
57.6%16.6%19%25.6%
Share Price 12.5% 47.1% 17.8% 0.1%
Key Financial Ratios
RATIOS \ YEARSMar'07Mar'08Mar'09Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)000110.71.70.30.30
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)00027.6825.642426.127240
Margins
Net Profit Margin (%) 25.427.1118.410.7613.6715.0522.419.7622.727.09
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 52.9163.2229.0617.0410.613.1824.7918.9122.8429.02
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 35.00%
Institutions 47.77%
Non-Institutions 17.23%
Pledged *3.314.564.904.903.383.382.192.191.690.77
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Manappuram Finance Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Manappuram Finance Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Manappuram Finance Ltd.'s performance infers:

Manappuram Finance Ltd. earnings have grown by 40.2%, whereas share price has appreciated 47.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Manappuram Finance Ltd. share prices over the last 10 years. Here is what we found out:

Manappuram Finance Ltd. share price has appreciated 8.3% annually over the past ten years.

Manappuram General Finance & Leasing Limited (MAGFIL), a non banking finance company promoted by the Manappuram Group was established in 1992, it has its headquarters at Valapad, Thrissur District, Kerala. The company went public in August 1995 and has grown substantially since then. The shares of MAGFIL are listed on the Bombay, Chennai and Cochin Stock Exchanges and the company has paid dividends to shareholders every year since the first full year of its operations.

MAGFIL, the

Manappuram General Finance & Leasing Limited (MAGFIL), a non banking finance company promoted by the Manappuram Group was established in 1992, it has its headquarters at Valapad, Thrissur District, Kerala. The company went public in August 1995 and has grown substantially since then. The shares of MAGFIL are listed on the Bombay, Chennai and Cochin Stock Exchanges and the company has paid dividends to shareholders every year since the first full year of its operations.

MAGFIL, the flag-ship company of Manappuram Group, was established in the wake of economic reforms launched by the Government of India mainly to take advantage of the importance assigned to Leasing as a vehicle to promote decentralized pattern of Economic Growth through small and medium enterprises. In a short span of time, MAGFIL had several Firsts.

The company has been consistently making profit and paying dividends from the first full year of its operations. To facilitate the fund-based activities, the company accepts deposits, bonds and non-convertible debentures with attractive interest rates. The company was awarded MA+ by ICRA which signifies adequate safety for customers` deposits. It also achieved the credit rating of 'LA' from ICRA for its working capital limit of Rs.1 billion under BASEL II norms.

The Manappuram Group was founded in 1949 by late V.C. Padmanabhan. There are 7 companies under its fold, having more than 700 branches spread over 14 states and a total business over Rs 20 billion, a workforce of over 5,000 and a customer base of over 1 million.

MAGFIL is managed by a broad-based board consisting of eminent professionals who have excelled in their respective fields of activity - banking, business, legal, computer, finance and capital markets among others. The chairman of the company is V P Nandakumar.

One of the biggest assets of the company is its highly qualified and professional workforce comprising of company secretaries, chartered accountants, cost accountants, MBAs and computer engineers. Operations of the company are fully computerized.

In 2011 Company adopts a new name, Manappuram Finance Ltd., in place of the earlier name Manappuram General Finance and Leasing Ltd.

Services offered by the company are:

Fund-based and fee-based services are offered by the company including security loans, gold loans, personal loans, instant money transfers, foreign exchange, bonds, non-convertible debentures, life insurance, general insurance, hire purchase and leasing schemes.

The company, through its subsidiary, Manappurm Insurance Brokers Pvt, Ltd, also provides life insurance products; and general insurance products, such as motor, health, travel, and property and liability insurance. Further, it acts as agent for housing loan and car loans of banks.

Achievements of the company

The company has a number of achievements to its credit, some of which are listed below.

  • It is the FIRST NBFC to be registered from the State of Kerala with Reserve Bank of India, fully complying with RBI Directions.
  • It is the FIRST NBFC from Kerala to be rated by ICRA, a credit rating agency approved by the Reserve Bank of India and the rating awarded to its Public Deposit Programme as (MA+), which indicates adequate safety for deposits. Further, ICRA granted 'LA' rating for its working capital limit to the tune of Rs.1 Billion under BASEL II norms of RBI.
  • It is the FIRST NBFC to go for public issue from Kerala.
  • It is the FIRST NBFC from Kerala to have received Adequate Safety rating for its Secured Non- convertible redeemable debenture issue for Rs. 50 million.
  • It is the FIRST NBFC from Kerala receiving AD (Authorised Dealer) - II category licence from RBI for its Forex operations.
  • It is the FIRST NBFC from Kerala to come out with a bonus issue of 1:1.
  • First NBFC from Kerala to receive Foreign Direct Investment (FDI).
  • First NBFC from Kerala to obtain Broker's License from IRDA (Insurance Regulatory & Development Authority).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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