Manappuram Fin fizzles out

about 4 months ago
No Image

Manappuram Finance, the second largest gold loan company in the country and the fourth largest microfinance lender in the country in terms of the loan book is in the news.

Founder and chief executive of Manappuram Finance Group, V P Nandakumar yesterday said that  they are planning to hive off Asirvad within a year, and then take it public. It is looking at the right valuation and the CEO is looking at a price to book value of 3-4 times, which is 2 times now. Asirvad, the microlending arm is the biggest vertical after the gold loan business for the group.

He said that Asirvad's net profit had dipped to Rs.18 crore in Q3 v/s Rs.71 crore (YoY) and it posted a net loss of Rs.2.42 crore in Q1 due to the pandemic but it is expected to make a big comeback and clock Rs.200 crore net income in FY22.

From its mainstay, which is the gold loan business, the CEO expects a YoY growth of 20% in current fiscal.

The market has not reacted very positively to this news; though the stock opened 1.5% higher at Rs.153.35, it soon slipped down to Rs.150, where it is currently trading in the red.

Popular Comments

No comment posted for this article.