Manappuram Finance Share Price: Manappuram Finance Limited, a leading Indian non-banking financial company (NBFC) specialising in gold loans, reported its Q4 results, with net interest income rising 5.8 per cent year-on-year to Rs 1,192 crore, while profit declined 9.4 per cent to Rs 376 crore, and impairments increased sharply to Rs 216 crore.
Following the NBFC stock Q4 results, the brokerages, Morgan Stanley and Nirmal Bang, have shared their views along with ratings and the latest target price. If you have this stock in your portfolio, here’s what you must know.
Manappuram Finance Share Price: Brokerages’ ratings on NBFC stock post Q4 results
Morgan Stanley on Manappuram Finance Ltd
The brokerage firm, Morgan Stanley, maintains an equal weight rating on this NBFC stock with an unchanged target price of Rs 270. Here are the reasons behind this rating.
Manappuram Finance Gold loan yields declined by 100 basis points QoQ in line with peer alignment.
The brokerage further said the company’s management has set a target of achieving a consolidated ROE of 15 per cent by FY28.
The brokerage remains cautious due to limited visibility in the non-gold loan businesses.
Asirvad MFI’s profitability was supported by one-time provision reversals and mark-to-market (MTM) gains.
Nirmal Bang on Manappuram Finance Ltd
The brokerage firm, Nirmal Bang Institutional Research, maintains a hold rating on this NBFC stock with a target price of Rs 337, implying an upside of 10.4 per cent, while strong growth in the gold loan segment has been sustained.
The brokerage highlighted that Manappuram’s 4QFY26 performance was below their estimates at the NII/PAT level by 1.1%/4.8%, although PPoP beat the brokerage estimates by 7.9 per cent.
Calculated NIM declined by 169 bps QoQ to 9.5 per cent, as the company aligned its pricing in line with peers, as against the earlier above-industry average.
Standalone gold AUM grew 98% YoY/31.4% QoQ to Rs488 billion, the brokerage highlighted.
Manappuram Finance Gold loan LTV remained stable at 57 per cent as on 31-Mar-26.
Average ticket size of gold loans grew 68% YoY and 25% QoQ to Rs1,27,700 due to a rise in gold prices and shift to higher ticket size lending.
The brokerage firm further said, among key subsidiaries, Asirvad MFI recorded net profit of Rs130 million in 4QFY26 as against a loss of Rs6.26 billion in 4QFY25 and Rs 1.5 billion in 3QFY26.
Asirvad’s AUM increased 11.5% YoY to Rs 67.9 billion due to a 130.4% YoY increase in gold loans. MFI AUM declined 35.7 per cent YoY, while MSME AUM declined 65.5 per cent YoY.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
