NSEI:MANAPPURAM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


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

Stable Share Price: MANAPPURAM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.5%

MANAPPURAM

-7.8%

IN Consumer Finance

1.4%

IN Market


1 Year Return

-21.5%

MANAPPURAM

-34.3%

IN Consumer Finance

-30.7%

IN Market

Return vs Industry: MANAPPURAM exceeded the Indian Consumer Finance industry which returned -33.9% over the past year.

Return vs Market: MANAPPURAM exceeded the Indian Market which returned -29.6% over the past year.


Shareholder returns

MANAPPURAMIndustryMarket
7 Day-8.5%-7.8%1.4%
30 Day-42.4%-46.9%-24.8%
90 Day-47.2%-45.6%-30.6%
1 Year-20.0%-21.5%-33.7%-34.3%-29.3%-30.7%
3 Year5.3%-1.0%9.5%6.9%-18.1%-22.6%
5 Year221.5%173.9%77.7%69.7%-7.2%-12.2%

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 compared to its fair value and its price relative to the market?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MANAPPURAM (₹93.4) is trading below our estimate of fair value (₹167.12)

Significantly Below Fair Value: MANAPPURAM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MANAPPURAM is good value based on its PE Ratio (5.9x) compared to the Consumer Finance industry average (10.2x).

PE vs Market: MANAPPURAM is good value based on its PE Ratio (5.9x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: MANAPPURAM is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: MANAPPURAM is overvalued based on its PB Ratio (1.6x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Manappuram Finance forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MANAPPURAM's forecast earnings growth (15.1% per year) is above the savings rate (6.5%).

Earnings vs Market: MANAPPURAM's earnings (15.1% per year) are forecast to grow slower than the Indian market (19.5% per year).

High Growth Earnings: MANAPPURAM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MANAPPURAM's revenue (14.4% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: MANAPPURAM's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MANAPPURAM's Return on Equity is forecast to be high in 3 years time (22.9%)


Next Steps

Past Performance

How has Manappuram Finance performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MANAPPURAM has high quality earnings.

Growing Profit Margin: MANAPPURAM's current net profit margins (38.8%) are higher than last year (30.9%).


Past Earnings Growth Analysis

Earnings Trend: MANAPPURAM's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: MANAPPURAM's earnings growth over the past year (58.6%) exceeds its 5-year average (28.5% per year).

Earnings vs Industry: MANAPPURAM earnings growth over the past year (58.6%) exceeded the Consumer Finance industry 15.6%.


Return on Equity

High ROE: Whilst MANAPPURAM's Return on Equity (26.24%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Manappuram Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MANAPPURAM has a low level of unsold assets or inventory.

Debt Coverage by Assets: MANAPPURAM's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: MANAPPURAM's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MANAPPURAM has a sufficient allowance for bad loans.

Low Risk Liabilities: MANAPPURAM reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MANAPPURAM has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MANAPPURAM has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MANAPPURAM has an appropriate level of bad loans.


Next Steps

Dividend

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

2.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MANAPPURAM's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.94%).

High Dividend: MANAPPURAM's dividend (2.36%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: MANAPPURAM's dividends per share have been stable in the past 10 years.

Growing Dividend: MANAPPURAM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14%), MANAPPURAM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MANAPPURAM's dividends in 3 years are forecast to be well covered by earnings (21.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Vazhappully Nandakumar (65yo)

7.92s

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

Compensation vs Market: Vazhappully's total compensation ($USD1.64M) is above average for companies of similar size in the Indian market ($USD476.76K).

Compensation vs Earnings: Vazhappully's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vazhappully Nandakumar
MD, CEO & Director7.92yrs₹123.71m34.52% 27.2b
A. Bindu
Chief Financial Officer1.25yrs₹3.13m0.0060% 4.8m
Vilakkithala Raman Kumar
Company Secretary & Compliance Officer1.25yrs₹3.22mno data
B. Babu
Executive Director27.75yrs₹17.13m0.19% 151.0m
Raju Kalathiparambil
Senior Vice Presidentno datano datano data
K. Kumar
Executive VP & Head of Commercial Vehicle5.83yrsno data0.0041% 3.3m
Shekhar Ramarajan
Executive Vice President2.33yrsno datano data
Aseem Nath Bhardwaj
Executive Vice President1.67yrsno datano data
Dhiraj Agrawal
Senior Vice President3.17yrsno datano data
Puneet Kohli
Senior Vice President2.25yrsno datano data

2.3yrs

Average Tenure

47yo

Average Age

Experienced Management: MANAPPURAM's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vazhappully Nandakumar
MD, CEO & Director7.92yrs₹123.71m34.52% 27.2b
B. Babu
Executive Director27.75yrs₹17.13m0.19% 151.0m
Shailesh Mehta
Additional Independent Director0.17yr₹4.82m0.059% 46.7m
Jagadish Capoor
Independent & Non-Executive Chairman7.92yrs₹5.18m0.00024% 189.4k
Gautam Narayan
Non-Independent Non-Executive Director2.17yrsno datano data
V. Ramachandran
Independent Non-Executive Director18yrs₹3.12m0.14% 106.9m
P. Manomohanan
Independent & Non-Executive Director16.67yrs₹4.56m0.11% 88.1m
Sutapa Banerjee
Independent Non-Executive Director1yr₹480.00kno data
Abhijith Sen
Independent Director0.75yrno datano data
Harshan Kollara
Additional Director0.25yrno datano data

5.0yrs

Average Tenure

68yo

Average Age

Experienced Board: MANAPPURAM's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Manappuram Finance Limited
  • Ticker: MANAPPURAM
  • Exchange: NSEI
  • Founded: 1949
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹78.922b
  • Shares outstanding: 844.99m
  • 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, as well as short-term personal and business gold loans; SME and micro, and equipment finance; foreign exchange and money transfer services; commercial vehicle loans; home loans; loans against properties; and insurance brokerage services. As of March 31, 2019, it operated 4,351 branches in 24 states and 4 union territories. The company was formerly known as Manappuram General Finance and Leasing Limited and changed its name to Manappuram Finance Limited in 2011. Manappuram Finance Limited was founded in 1949 and is headquartered in Thrissur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 12:57
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
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.