Motilal Oswal has given Buy recommendation for Manappuram Finance recommended buy rating on the stock with a target price of Rs 205 in its researc with a target price of Rs. 205 in its research report issued on May 26, 2021

Motilal Oswal’s research report on Manappuram Finance

Consolidated PAT grew 18% YoY to INR4.7b (5% miss) in 4QFY21. While operating profit was largely in line, higher provisions (from the MFI segment) led to the PAT miss. Compared to our expectation of 3% QoQ decline, the gold loan book declined 6% QoQ. All the other segments delivered sequential loan book growth – the most prominent being the MFI segment with 11% growth.

Outlook

Our EPS estimates are largely unchanged. We maintain our Buy rating with a TP of INR205/share (1.6x FY23E BVPS).

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