Buy Mid Cap NBFC Stock For Good Return, Dividend Income: Motilal Oswal

Motilal Oswal has recommended investors to buy NBFC sector stock, Manappuram Finance Ltd with a target price of Rs 150 apiece. If you buy Manappuram Finance now, you can get potential return of 30%. The company declared an interim dividend of Rs 0.75 per share on February 3, 2023 and fixed February 15, 2023 as the record date. Check details related to the stock below:

1. Manappuram Finance Share Performance

The last trading price of the stock is Rs 115.65 apiece with intraday decline of 0.39%. The stock's 52-week high is Rs 161 apiece and 52-week low is Rs 81.50 apiece, respectively.

2. Manappuram Finance Return

The stock rose 11% in last 3-months, 7% in last 6-months, and declined 26% in last 1-year. It fell 32% in last 3-years and rose 12% in last 5-years.

3. Manappuram Finance Valuation

According to Motilal Oswal, "MGFL trades at 0.9x FY24E P/BV and we believe that there is still a re-rating scope in valuation multiples for a franchise that can deliver an RoE of 16%-17%. We believe that the risk-reward for MGFL is favorable and we reiterate our Buy rating with a TP of INR150 (based on 1.1x Sep'24E consolidated BVPS)."

The Q3 FY23 consolidated PAT grew 51% YoY but declined 4% QoQ to ~INR3.9b. 9MFY23 PAT grew 2% YoY to ~INR10.5b. NII grew 19% YoY to ~INR10.9b. PPOP rose 31% YoY to ~INR5.9b. Consolidated credit costs at ~65bp annualized (PQ: 105bp) declined due to lower credit costs in the MFI business, added Motilal Oswal.

4. Manappuram Finance About

Manappuram Finance Ltd is one of India's leading gold loan NBFCs. Over the last six years, the company has diversified into new business areas like microfinance, vehicle and housing finance, and SME lending.

In February 2015, the company acquired Asirvad Microfinance Pvt. Ltd. with AUM a little short of Rs. 3,000 million. Today, six years of its takeover, AUM has around Rs. 60,000 million, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.