Manappuram Finance Ltd. is a non-banking financial company (NBFC) which was incorporated in 1992. The company was the first NBFC in Kerala to receive the Certificate of Registration issued by the Reserve Bank of India (RBI). Manappuram Finance Ltd. products include gold loan, online gold loan, Small and Medium Enterprises Finance, Forex and Money Transfer and Commercial Vehicle Loan.
The market capitalisation of Manappuram Finance Ltd., as of 9 August 2018, stood a little above Rs.9,356 crore.
Company’s Wealth and Recent Performance
- The company’s key products/ revenue source includes interest generated from loans which contributed Rs.2,980.77 crore to the sales value, while processing charges contributed Rs.17.27 crore to the sales value and other operating revenue contributed Rs.8.98 crore for the year ending on 31 March 2018.
- For the quarter ending 31 March 2018, Manappuram Finance Ltd. reported a consolidated sales of Rs.889.80 crore, up by 1.95% compared the previous quarter of Rs.872.78 crore; however, it was down -1% compared to same period last year when sales were Rs.898.80 crore.
- The company has reported a net profit after tax of Rs.183.18 crore in the latest quarter.
- The net profit of the company fell by 9.2% at Rs.182.17 crore in the Q4 FY 2017-18. The company had reported a net profit of Rs.200.58 crore in the same quarter in the previous fiscal.
- The total income during the said quarter also declined to Rs.901.19 crore compared to Rs.905.50 crore in the same period of 2016-17.
- The net profit declined to Rs.670.89 crore from Rs.755.85 crore in the year ended 31 March 2017. Incomes for the year declined to stand at Rs.3,476.56 crore from Rs.3,408.91 crore.
- The company’s board has declared an interim dividend of 50 paise per equity share for the period 2017-18.
Manappuram Stock Trends in 2018
- On 1 January 2018, the Manappuram Finance Ltd. stock price opened at Rs.123.45 with marginal fluctuations till the 22nd when it was traded at Rs.120.75. On the last day of the month, the stock price fell to stand at Rs.110.95.
- In February, the scrip price opened on NSE at Rs.112.40 before it declined to Rs.102.55 on the 6th of the month as the company reported a fall in net profit for Q3 FY 2017-18 of nearly 9%; however, it recovered by the 8th to stand at Rs.108.60. On the 20th, the company declared a dividend of 25% and ended the month at Rs.107.95.
- When trading opened for the month of March 2018, the stock price of the company stood at Rs.107.80. With marginal variations during the rest of the month, the stock ended at Rs.109.05.
- On 2 April 2018, the Manappuram Finance stock opened at Rs.109.90 and over the course of the month, the price of the stock grew significantly to end the month at Rs.122.25.
- With significant gains in the month of April 2018, the stock opened for trading at Rs.122.75 on the 2nd of May 2018. The stock price increased during the first week before it fell and ended the month at Rs.107.70. The company also announced an interim dividend on the 29th of the month at 25%.
- In June, the stock price opened for trading at Rs.107.60 before it fell to Rs.96.40 on the 28th of the month; however, ended the month at Rs.98.50 gaining marginally.
- On 2 July, the stock opened for trading at Rs.98.80 and increased to Rs.106.50 on the 11th. With slight variations over the next weeks, the stock closed at Rs.105.40 on the last day of the month.
Manappuram Finance Stock Trends in 2016 and 2017
- On 1 January 2016, the stock price of the company opened for trading at Rs.29.45 and ended the month down by nearly 1 point. On the 1st of February, the stock opened at Rs.28.65 and inclined during the course of the month to end at Rs.30.15. When the stock market opened for trading on 1st March, the stock price of the company stood at Rs.30.40 and moved upwards to end the month more than 4 points than the opening date.
- On 1st April, the price of the stock stood at Rs.35.15 inclined considerably to end at Rs.40.30. With an upward trend, the stock opened at Rs.40.05 on the 2nd of May and increased by more 10 points by the end of the month. On 1st June, the stock opened for trading at Rs.53.80 and the stock price moved significantly upwards to end at Rs.68.95.
- The stock price stood at Rs.69.70 on the 1st of July with slight fluctuations over the course of the month to end at Rs.82.00. On 1st August, the scrip price stood at Rs.82.10 and witnessed a little more than 5 point gain over the opening price of the month. In September, the stock price on the 2nd stood at Rs.84.00 and the stock ended the month significantly higher by more than 10 points.
- With considerable gains in September, the stock opened for trading at Rs.92.50 and grew to close the month at Rs.102.70. On 1st November, the stock price stood at Rs.102.50 and remained steady until the 10th before it declined significantly on the 21st to stand at Rs.70, down by more than 30 points. On the last month of 2016, the stock opened at Rs.78.75 and the lowest price stood on the 26th at Rs.58.80 and ended the month at Rs.67.30.
- On the 2nd of January 2017, the price of stock stood at Rs.68.25 and grew to end the month at Rs.80.60. On 1st February, the stock opened for trading at Rs.78.65 and made significant gains to reach Rs.103.45 on the 17th of the month, but ended the month lower when the stock price stood at Rs.97.15. In March, the stock price opened at Rs.98.40 and closed the month at Rs.98.15 with not many gains.
- When NSE opened for trading on 3rd April, the stock price of the company stood at Rs.98.50 and remained steady over the course of the month; however, it ended at Rs.93.45 down by nearly 5 points. On 2nd May, the price of stock opened at Rs.94.35 remaining steady before declining on the 23rd to touch Rs.85.25 and ended the month 2 point higher. The stock price of the company stood at Rs.89.50 on the 1st of June, gained through the month, and closed at Rs.97.95.
- On 3 July 2017, the stock price stood at Rs.98.40 and touched 10 points higher on the 24th before declining to end the month at Rs.106.75. On 1st of August, the stock opened for trading at Rs.106.60 before declining sharply on the 18th to stand at Rs.84.80 but gained by the end of the month to stand at Rs.99.30. In September, the stock opened for trading in NSE at Rs.100.25 and touched 10 points higher on the 12th and closed the month at Rs.96.65.
- On 3rd October, the price of the stock stood at Rs.98.55 and ended the month 2 points higher compared to the opening date. On 1st November, the stock was available at Rs.101.70. Despite slight variations, the stock ended 4 points by the end of the month. On the last month of 2017, the stock opened for trading at Rs.106.00 and declined to Rs.99.80 on the 14th; however, it recovered to the close the month at Rs.121.30.
Should You Invest in Manappuram Finance?
- Despite a drop in net profit, the stock price of the company has been on an upward trajectory over the last three years. The company has reported a net profit in the latest quarter suggesting the price is expected to move upwards.
- On a year-on-year basis, the net profit of the company declined to Rs.670.89 crore from Rs.755.85 crore for the year ending on 31 March 2017. Also, the income has decreased at Rs.3,476.56 compared to Rs.3,408.91 crore reported for the same period last year.
- The company’s management team is will capable of implementing strategies and taking important decisions at the required time. Despite a fall in stock price in the recent times, the price of the stock has grown by nearly 100 points in the last three years.
Manappuram Finance Ltd. is based out of Thrissur in Kerala and incorporated in 1992 and has over 3000 branches across 25 states in the country with a staff strength of more than 15,000 people. Currently, the company has a market capitalisation of more than Rs.9,000 crore operating mainly in the finance sector. Manappuram Finance is listed in the National Stock Exchange (NSE) and in the Bombay Stock Exchange (BSE). The company offers loan on gold, and for commercial vehicles as well as finance for Small and Medium Enterprises.
History of the Company
Incorporated in 1992, Manappuram Finance Ltd. is a non-financial company (NBFC), founded by late V.C. Padmanabhan in Thrissur district. It announced the commencement of operations at Valapad with operations on money lending. Initially known as Manappuram General Finance and Leasing Ltd. and in 2011, it was renamed as Manappuram Finance Ltd. In 2014, the company acquired Milestone Home Finance.
Management of the Company
Jagdish Capoor is the Independent and Non-Executive Chairman of the company. He holds a master’s degree in Commerce from Agra University and a fellowship from the Indian Institute of Banking and Finance. With over four decades of experience in banking and finance, he was also the former Deputy Governor of Reserve Bank of India. He’s currently on the Board of LIC Housing Finance Ltd., HDFC Securities Ltd., Nitesh Estates Ltd., LIC Pension Fund Ltd., among others.
V.P. Nandakumar is the Managing Director and the Chief Executive Officer (CEO) of the company and in 1986, after the demise of his father, took over the family business. In 1992, he promoted Manappuram Finance Ltd. and has been director of the company since then. He has a post-graduation in science with additional qualifications in Banking and Foreign Trade. He is also a Managing Committee member of ASSOCHAM and FICCI. Additionally, he is also the Chairman of the Kerala state council of the CII.
B.N. Raveendra Babu
B.N. Raveendra Babu is the Executive Director of the company and holds a master’s degree in Commerce from Calicut University and has an internship from the Institute of Certified Management Accountants. He was initially appointed as the Joint Managing Director in 2010 and was redesignated as Executive Director in 2012.
Manappuram Finance Ltd. in NSE, BSE and Listings
The equity shares of Manappuram Finance Ltd. are available for trading on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). The codes are as follows:
- NSE Code: MANAPPURAM
- BSE Code: 531213
- BSE Group: A
- Sector: Finance - Leasing & Hire Purchase
Manappuram Finance Ltd. Stock Indices are as follows:
- S&P CNX 500
- CNX Midcap
MANAPPURAM FINANCE LIMITED
IV / 470 (old) W638A (New), Manappuram House,
Valapad, Thrissur, Kerala, India - 680 567
Landline: 0487 3050 000, 3050 108, 3050 100
Fax : 0487 2399298
MANAPPURAM FINANCE LIMITED
501, 5th Floor, Aiswarya Business Plaza
Near Aiswarya Tower, CST Road Kalina
Santacruz - East, Mumbai, India - 400 098
Landline : 022 26674311
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