3 weeks ago
Top brokers issue mixed targets on Manappuram Finance shares
Manappuram Finance is a company that gives loans to people, often loans backed by gold.
It shared its results for the first quarter of its financial year.
The results were very good - profit jumped 340 per cent compared to the same time last year.
Stock experts called analysts studied these results.
Some analysts said people should buy the company's shares.
Other analysts said the shares are fairly priced, so people should just hold them.
The price targets ranged from Rs 315 to Rs 435.
Analysts also talked about a new boss, Ashish Singh, who will lead the company from January 2027.
Most experts agree the company is improving.
But they do not agree on whether the share price will go much higher.
Brokerages issued ratings ranging from 'Buy' (Jefferies, DAM Capital, Equirus Securities) to HOLD/Neutral calls, with target prices from Rs 315 to Rs 435.
MOFSL said consolidated PAT rose 340 per cent year-on-year, a 26 per cent beat, while net interest income grew 25 per cent year-on-year.
Nirmal Bang expects ROA/ROE to improve to 3.5%/14.1% in FY27E and 3.8%/15% in FY28E from 2.8%/11% in FY26, but recommends HOLD with a Rs 375 target.
Morgan Stanley suggested 'Equalweight' at Rs 360; CLSA suggested 'Hold' at Rs 350; Investec 'Hold' at Rs 400; MOFSL 'Neutral' at Rs 390.
Manappuram Finance appointed Ashish Singh as managing director and chief executive officer for a five-year term effective January 2027.
- Who
- Manappuram Finance and analysts at brokerages including Morgan Stanley, CLSA, Jefferies, MOFSL, Nirmal Bang and Equirus Securities.
- What
- Top brokerages released ratings and target prices for Manappuram Finance shares following its first-quarter FY27 results.
- Where
- Not explicitly stated in the article.
- When
- After the release of the company's 1QFY27 results.
- Why
- The strong quarterly performance - consolidated PAT up 340 per cent year-on-year with a sharp recovery in business momentum - prompted analysts to update their views.
Bullish analysts
Cautious analysts
Valuation and re-rating
Bullish analysts
Equirus Securities sees a sharp recovery in business momentum and profitability and raised its target from Rs 360 to Rs 435, retaining its LONG stance.
Cautious analysts
Nirmal Bang says the improving returns profile is largely reflected in the current valuation and sees limited room for further re-rating, recommending HOLD at Rs 375.
Share price outlook
Bullish analysts
Jefferies, DAM Capital and Equirus Securities suggest 'Buy' or an equivalent positive stance with targets of Rs 430, Rs 400 and Rs 435 respectively.
Cautious analysts
Morgan Stanley suggests 'Equalweight' at Rs 360, while CLSA, MOFSL, Phillip Capital and 360 ONE Capital maintain HOLD/Neutral stances with targets from Rs 315 to Rs 390.
Key facts
- Company
- Manappuram Finance
- Target price range
- Rs 315 (360 ONE Capital) to Rs 435 (Equirus Securities)
- Most bullish call
- Equirus Securities 'LONG', Rs 435 target (raised from Rs 360)
- Consolidated PAT growth (Q1 FY27)
- +340% year-on-year, a 26% beat vs estimates
- Net interest income growth
- +25% year-on-year
- New MD & CEO
- Ashish Singh, five-year term effective January 2027
- MOFSL rating
- Neutral, target Rs 390 (1.8x FY28E BVPS)
Quotes
Morgan Stanley
Equity research team at Morgan Stanley
“We expect the earnings trajectory to remain constructive, supported by healthy AUM growth, resilient NIMs, disciplined costs, and improving asset quality.”
businesstoday.in
“We recommend HOLD with a target of Rs 375.”
businesstoday.in
Sources
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