Manappuram Finance is a major non-banking financial company (NBFC) in India. Established in 1949, it is headquartered in Kerala. It offers loans against gold, which is its largest business segment. Additionally, the company provides microfinance, vehicle loans, home loans, money transfer services, and foreign exchange solutions. Let’s check trends of Manappuram Finance Share in 2024.
Description
RBI actions impact Manappuram Finance Share, causing sharp stock drops and heavy sell-off warnings.
Key Facts
- Manappuram Finance has become one of the biggest financial institution in India, particularly well-known for gold loan services.
- The company operates through over 4,500 branches across the country and has an employee base of around 25,000 people.
- Its market capitalization is around ₹12,121 crores.
Analyzing Manappuram Finance Share Price in 2024
Manappuram Shares Slides in Just Five Days
Manappuram Finances Share price fell significantly due to multiple reasons. In the past five days, the share price dropped 17.61%. Year-to-date (YTD) performance shows a 10.89% decrease. The RBIs action against its subsidiary, Asirvad Microfinance, caused a further 15% drop.
Mutual Fund and FII Holdings Hit Hard
Decreasing mutual fund holdings, down to 1.11%, and foreign institutional investor (FII) holdings, down to 30.36%, added to the decline. Analysts issued downgrades due to these performance concerns. The share price is currently trading at ₹144.70, compared to ₹146.90 earlier, with all these factors contributing to the drop.
What’s Behind Manappuram Share Decline?
Manappuram Finances Share price has fallen significantly in recent weeks, dropping 17.61% in the last five days and 30% over the past month. As of October 21, 2024, the stock price stands at ₹146.90, reflecting a 4.27% drop from ₹153.45 in the previous close. The market capitalization is ₹12,121 crores, with a price-to-earnings (P/E) ratio of 5.40.
Strong Profit Despite Price Drop
The company reported ₹554.62 crore in net profit in the last quarter, with total revenue reaching ₹8,705.51 crore, up from ₹6,580.33 crore the previous year. The stock has a Manappuram Finance dividend yield of 2.42%, a price-to-book (P/B) ratio of 1.12, and a beta of 1.67. The company’s Return on Capital Employed (ROCE) stands at 13.8%, while its Return on Equity (ROE) is 20.6%.
RBI Action Sparks Downgrades, Will the Stock Rebound?
A recent decline in the share price followed regulatory actions by the Reserve Bank of India (RBI) against its subsidiary, Asirvad Microfinance, which led to multiple downgrades from analysts. Despite these setbacks, some predict the stock price may rally up to ₹183, while others urge caution.
Dividend Yield Shines Amid Lower P/E Ratio and Share Price Drop
Currently, the Manappuram Finance stock prices is at ₹146.90, down 4.27%. The company’s market capitalization stands at ₹12,973.31 crores, with a P/E ratio of 7.83. Despite its lower-than-sector average P/E, the dividend yield is 2.45%.
Manappuram Finance Share 2024 Final Verdict
Analysts predict Manappuram Finances Share price could reach ₹208.07. The highest expected value is ₹260.00, while the lowest is ₹150.00. In the last quarter, Manappuram(https://www.youtube.com/channel/UC61FNQkz-EYTASuQwLBcfFQ) reported ₹554.62 crores in net profit. Out of 14 analysts, six recommend a strong buy, three suggest buying, four advise holding, and one recommends selling. reflecting mixed sentiment about the stock’s future performance. Therefore, analysts reviews of Manappuram Finance show varied opinions.
Social Media Links
- ⓕ(https://www.facebook.com/ManappuramFinanceLimitedMAFIL/)
- 🐦(https://www.twitter.com/ManappuramMAFIL)
- 💼(https://www.linkedin.com/company/manappuram-finance-limited)
- 🅾(https://www.instagram.com/manappuramofficial?igshid=17zab8da0n5qk)
