BSE:531213

Stock Analysis Report

Executive Summary

Manappuram Finance Limited, a non-banking financial company, provides retail credit products and financial services in India.

Snowflake

Fundamentals

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Manappuram Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.7%

BSE:531213

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

20.0%

BSE:531213

-3.2%

IN Consumer Finance

-14.7%

IN Market

531213 outperformed the Consumer Finance industry which returned -3.1% over the past year.

531213 outperformed the Market in India which returned -14.6% over the past year.


Share holder returns

531213IndustryMarket
7 Day-0.7%-3.6%-2.1%
30 Day4.1%1.9%-3.9%
90 Day-13.1%-10.2%-10.1%
1 Year22.4%20.0%-2.5%-3.2%-12.9%-14.7%
3 Year53.9%44.5%59.3%56.0%17.7%11.5%
5 Year451.6%362.6%233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Manappuram Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Manappuram Finance undervalued based on future cash flows and its price relative to the stock market?

10.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Manappuram Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Manappuram Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Manappuram Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Manappuram Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Manappuram Finance is good value based on expected growth next year.


Price Based on Value of Assets

Manappuram Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Manappuram Finance expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Manappuram Finance's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

Manappuram Finance's earnings are expected to grow by 17% yearly, however this is not considered high growth (20% yearly).

Manappuram Finance's revenue growth is expected to exceed the India market average.

Manappuram Finance's earnings growth is positive but not above the India market average.

Manappuram Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Manappuram Finance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Manappuram Finance performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Manappuram Finance has delivered over 20% year on year earnings growth in the past 5 years.

Manappuram Finance's 1-year earnings growth exceeds its 5-year average (41.5% vs 28.3%)

Manappuram Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (41.5% vs 15%).


Return on Equity

Whilst Manappuram Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Manappuram Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Manappuram Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Manappuram Finance's financial position?


Financial Position Analysis

Manappuram Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Manappuram Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Manappuram Finance's level of debt (334.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (312.9% vs 334.5% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Manappuram Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Manappuram Finance's current dividend yield, its reliability and sustainability?

2.73%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Manappuram Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Manappuram Finance's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).


Next Steps

  • Explore strong dividend paying companies in the Diversified Financials industry.

Management

What is the CEO of Manappuram Finance's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Vazhappully Nandakumar (65yo)

7.3yrs

Tenure

₹123,710,000

Compensation

Mr. Vazhappully Padmanabhan Nandakumar, M.Sc, CAIIB (Part I) has been the Managing Director and Chief Executive Officer of Manappuram Finance Limited since May 19, 2012. Mr. Nandakumar serves as the Chief  ...


CEO Compensation Analysis

Vazhappully's remuneration is higher than average for companies of similar size in India.

Vazhappully's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

47yo

Average Age

The average tenure for the Manappuram Finance management team is less than 2 years, this suggests a new team.


Board Age and Tenure

7.2yrs

Average Tenure

68yo

Average Age

The tenure for the Manappuram Finance board of directors is about average.


Insider Trading

Manappuram Finance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹179,76924 Jun 19
Rajeev Sreedharan
EntityIndividual
Shares1,255
Max Price₹143.24
Sell₹580,78024 Jun 19
S. Sreedivya
EntityIndividual
Shares4,100
Max Price₹141.65
Sell₹9,562,01311 Jun 19
Baring Private Equity Partners (India) Ltd.
EntityCompany
Shares68,433
Max Price₹139.73
Sell₹27,057,99703 Jun 19
B. Babu
EntityIndividual
Role
Member of the Board of Directors
Executive Director
Shares200,000
Max Price₹135.29
Sell₹1,012,45003 Jun 19
S. Sreedivya
EntityIndividual
Shares7,600
Max Price₹133.22
Sell₹5,662,99727 May 19
K. Kumar
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares45,375
Max Price₹124.80
Sell₹1,473,60027 May 19
G. Vipin
EntityIndividual
Shares11,000
Max Price₹133.96
Sell₹1,876,49923 May 19
Joby Michael
EntityIndividual
Shares15,000
Max Price₹125.10
Sell₹505,00009 Mar 19
Mathew Mani
EntityIndividual
Shares4,250
Max Price₹118.82
Sell₹2,186,99903 Oct 18
K. Kumar
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares30,000
Max Price₹72.90
Buy₹109,488,27028 Sep 18
Vazhappully Nandakumar
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares1,400,000
Max Price₹78.21
Buy₹127,372,94226 Sep 18
Vazhappully Nandakumar
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares1,500,000
Max Price₹84.92
Buy₹80,321,13422 Sep 18
Baring Private Equity Partners (India) Ltd.
EntityCompany
Shares855,383
Max Price₹93.90
Buy₹29,142,09411 Sep 18
Vazhappully Nandakumar
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares300,000
Max Price₹97.14
Buy₹999,99904 Sep 18
Vazhappully Nandakumar
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares10,000
Max Price₹100.00
Buy₹999,99904 Sep 18
P. Ekalavian
EntityIndividual
Shares10,000
Max Price₹100.00
Buy₹20,239,55901 Sep 18
Vazhappully Nandakumar
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares200,000
Max Price₹101.20

Ownership Breakdown


Management Team

  • K. Kumar (48yo)

    Executive Vice President

    • Tenure: 5.2yrs
  • Vazhappully Nandakumar (65yo)

    MD, CEO & Director

    • Tenure: 7.3yrs
    • Compensation: ₹123.71m
  • B. Babu (67yo)

    Executive Director

    • Tenure: 27.1yrs
    • Compensation: ₹17.13m
  • A. Bindhu (45yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
    • Compensation: ₹3.13m
  • Raju Kalathiparambil (40yo)

    Senior Vice President

    • Tenure: 0.0yrs
  • Aseem Nath Bhardwaj (47yo)

    Executive Vice President

    • Tenure: 1.0yrs
  • Shekhar Ramarajan (41yo)

    Executive Vice President

    • Tenure: 1.7yrs
  • Vilakkithala Raman Kumar

    Company Secretary & Compliance Officer

    • Tenure: 0.6yrs
    • Compensation: ₹3.22m
  • Dhiraj Agrawal (47yo)

    Senior Vice President

    • Tenure: 2.5yrs
  • Puneet Kohli (48yo)

    Senior Vice President

    • Tenure: 1.6yrs

Board Members

  • Jagdish Capoor (80yo)

    Independent & Non-Executive Chairman

    • Tenure: 7.3yrs
    • Compensation: ₹5.18m
  • Eknath Kshirsagar (78yo)

    Nominee Director

    • Tenure: 7.2yrs
  • Gautam Narayan (40yo)

    Non-Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Vazhappully Nandakumar (65yo)

    MD, CEO & Director

    • Tenure: 7.3yrs
    • Compensation: ₹123.71m
  • V. Ramachandran (66yo)

    Independent Non-Executive Director

    • Tenure: 17.3yrs
    • Compensation: ₹3.12m
  • B. Babu (67yo)

    Executive Director

    • Tenure: 27.1yrs
    • Compensation: ₹17.13m
  • P. Manomohanan (77yo)

    Independent & Non-Executive Director

    • Tenure: 16.0yrs
    • Compensation: ₹4.56m
  • V. Rajiven (68yo)

    Independent & Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: ₹3.50m
  • Sutapa Banerjee

    Independent Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: ₹480.00k
  • Abhijith Sen (69yo)

    Additional Director

    • Tenure: 0.1yrs

Company Information

Manappuram Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Manappuram Finance Limited
  • Ticker: 531213
  • Exchange: BSE
  • Founded: 1949
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹101.234b
  • Shares outstanding: 843.26m
  • Website: https://www.manappuram.com

Number of Employees


Location

  • Manappuram Finance Limited
  • Manappuram House
  • IV / 470 (old) W638A (New), Valapad PO
  • Thrissur
  • Kerala
  • 680567
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531213BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2002
MANAPPURAMNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2002

Biography

Manappuram Finance Limited, a non-banking financial company, provides retail credit products and financial services in India. The company offers loans against the pledge of household and used gold jewelry, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 12:36
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.