Neutral Manappuram Finance; target of Rs 330: Motilal Oswal

Neutral

Motilal Oswal's research report on Manappuram Finance

MGFL consol. PAT declined 14% YoY to INR2.4b in 3QFY26 (in line). NII declined ~18% YoY to ~INR13b (in line) and PPoP declined ~29% YoY to ~INR6.6b (~5% beat). Opex grew 7% YoY to ~INR7.6b (in line). This included one-time provisions of INR19m on account of the new labor codes. Consol. credit costs stood at ~INR3.5b (vs. est. of ~INR2.9b). Annualized credit costs for the quarter declined ~40bp QoQ to 2.9% (PQ: ~3.3%).

Outlook

With an AUM CAGR of ~40% over FY25-28, aided by higher gold prices and the company’s strategy to align its lending rates in line with other gold loan NBFC peers. Reiterate our Neutral rating on the stock with a TP of INR330 (based on 1.6x Dec’27E consolidated BVPS).

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