Archive · 11 Aug 2025
Manappuram Finance Shares Rebound After Q1 Results
Manappuram Finance's stock went up a little bit after the company shared its financial results.
While the company's vehicle loans are facing issues, the gold loan business is doing well, and the company plans to focus more on it.
Analysts have different opinions: some see the potential for growth, while others are concerned about problems with some loans and lower interest rates on gold loans.
The company aims to fix the problems in its vehicle loan business.
Manappuram Finance shares rose 2.2% after Q1 results.
Vehicle finance asset quality deteriorated, increasing gross NPA.
MGFL plans to increase gold loans to 75% of its portfolio.
Gold loan yields are expected to moderate to 18% in 4-6 quarters.
Analysts hold mixed views, citing both positive and negative factors.
- Who
- Manappuram Finance Ltd.
- What
- Manappuram Finance's stock performance and outlook.
- When
- Reported after Q1 results, on Monday.
- Where
- N/A
- Why
- To provide an update on the company's financial performance and future outlook.
Analysts' Concerns
Positive Outlook
Performance Evaluation
Analysts' Concerns
AUM decline and asset quality stress in Asirvad Microfinance.
Positive Outlook
Strong gold loan momentum in the June quarter
NIMs Outlook
Analysts' Concerns
NIMs of standalone business are likely to remain under pressure due to yields of core gold loan business trending downwards.
Positive Outlook
Impact of lower gold loan yields will be offset by stronger loan growth, ensuring that the projected income from the gold loan portfolio remains unaffected during the course of this year.
- Stock increase
- 2.2%
- Gross NPA (Vehicle Finance)
- Increased
- Planned Gold Loans
- 75% of portfolio
- Expected Gold Loan Yield
- 18%
- MOFSL Target Price
- Rs 280
- Nirmal Bang Target Price
- Rs 270
