NSEI:MANAPPURAM

Stock Analysis Report

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Market Cap

₹175.5b

Last Updated

2021/07/31 12:12 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

6 star dividend payer and good value.


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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MANAPPURAM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.1%

MANAPPURAM

1.4%

IN Consumer Finance

0.2%

IN Market


1 Year Return

30.8%

MANAPPURAM

74.0%

IN Consumer Finance

54.0%

IN Market

Return vs Industry: MANAPPURAM underperformed the Indian Consumer Finance industry which returned 74% over the past year.

Return vs Market: MANAPPURAM underperformed the Indian Market which returned 54% over the past year.


Shareholder returns

MANAPPURAMIndustryMarket
7 Day6.1%1.4%0.2%
30 Day24.0%3.4%1.9%
90 Day39.1%11.9%12.6%
1 Year32.4%30.8%74.8%74.0%56.1%54.0%
3 Year93.2%84.1%80.9%66.3%36.9%30.0%
5 Year163.4%140.4%193.2%163.1%82.0%66.7%

Long-Term 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?

1.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MANAPPURAM (₹207.35) is trading below our estimate of fair value (₹211.05)

Significantly Below Fair Value: MANAPPURAM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MANAPPURAM is good value based on its PE Ratio (10.2x) compared to the Indian Consumer Finance industry average (17.1x).

PE vs Market: MANAPPURAM is good value based on its PE Ratio (10.2x) compared to the Indian market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: MANAPPURAM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MANAPPURAM is overvalued based on its PB Ratio (2.4x) compared to the IN Consumer Finance industry average (0.9x).


Future Growth

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

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MANAPPURAM's forecast earnings growth (17.2% per year) is above the savings rate (6.8%).

Earnings vs Market: MANAPPURAM's earnings (17.2% per year) are forecast to grow slower than the Indian market (20.6% per year).

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

Revenue vs Market: MANAPPURAM's revenue (12.7% per year) is forecast to grow faster than the Indian market (12.4% per year).

High Growth Revenue: MANAPPURAM's revenue (12.7% 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%)


Past Performance

How has Manappuram Finance performed over the past 5 years?

26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MANAPPURAM has high quality earnings.

Growing Profit Margin: MANAPPURAM's current net profit margins (41.9%) are higher than last year (39.1%).


Past Earnings Growth Analysis

Earnings Trend: MANAPPURAM's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: MANAPPURAM's earnings growth over the past year (17.5%) is below its 5-year average (26.1% per year).

Earnings vs Industry: MANAPPURAM earnings growth over the past year (17.5%) exceeded the Consumer Finance industry 7.5%.


Return on Equity

High ROE: Whilst MANAPPURAM's Return on Equity (23.45%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Manappuram Finance's financial position?


Financial Position Analysis

Short Term Liabilities: MANAPPURAM's short term assets (₹294.4B) exceed its short term liabilities (₹6.7B).

Long Term Liabilities: MANAPPURAM's short term assets (₹294.4B) exceed its long term liabilities (₹233.2B).


Debt to Equity History and Analysis

Debt Level: MANAPPURAM's debt to equity ratio (308.2%) is considered high.

Reducing Debt: MANAPPURAM's debt to equity ratio has reduced from 346.8% to 308.2% over the past 5 years.

Debt Coverage: MANAPPURAM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if MANAPPURAM's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MANAPPURAM's dividend (1.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: MANAPPURAM's dividend (1.45%) is in the top 25% of dividend payers in the Indian market (1.42%)


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 (9.8%), 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 thoroughly covered by earnings (14.4% payout ratio).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Vazhappully Nandakumar (67 yo)

9.17yrs

Tenure

₹119,380,000

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 ($USD1.61M) is above average for companies of similar size in the Indian market ($USD432.35K).

Compensation vs Earnings: Vazhappully's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MANAPPURAM's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: MANAPPURAM's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MANAPPURAM insiders have only sold shares 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: ₹175.451b
  • Shares outstanding: 846.36m
  • 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


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 Analysis2021/07/31 12:12
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.