Manappuram Finance Limited

Financial Services — Credit Services · NSE

₹323.95+₹0.55 (+0.17%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Manappuram Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Manappuram Finance Limited, a gold loan non-banking financial company, provides fund-based and fee-based financial services in India. It operates through Gold Loan and Others, and Microfinance segments.

IndustryCredit Services

SectorFinancial Services

Employees23,984

Annual revenue₹5,514 Cr

How does it make money?

Turns over ₹5,514 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit. Each of its 23,984 employees supports ₹23.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 45.3% and earnings to grow about 19.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+45.3%

Est. earnings growth+19.6%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +24% while net margin moved -46% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+24%

Margin effect-46%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.3% — barely ahead of inflation
✗ Profit has declined at 12.5% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

46/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.9x

3Y Median

10.6x

40 monthly readings · mean 14.4x · range 6.0x–28.7x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 87% above its 3y median of 10.6x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 17% above the peer median of 17.0x.

vs. its own history

Expensive

10.6x median over 40 months · +87%

vs. sector peers

Fair

17.0x median of 4 peers · +17%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 15.5% to 6.3% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 33% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 87% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 7.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 15.5% to 6.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 8%✗ 6.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 6% a year✓ 7.3% CAGR
Latest reported year was 80.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 10.6x✗ 19.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹30,430 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

19.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹16.25

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

3.60x

High

High leverage

Revenue Growth (YoY)

80.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

288.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹20,438 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

10.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

52.4%

Good

Healthy core-business profitability

Net Margin

30.5%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

317.7 / 333.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,458 Cr	₹5,938 Cr	₹6,310 Cr	₹5,514 Cr	+7.3%
PAT (Net Profit)	₹1,496 Cr	₹2,189 Cr	₹1,216 Cr	₹1,003 Cr	-12.5%
EPS	₹17.67	₹25.86	₹14.37	₹11.83	-12.5%
ROE	15.5%	19.0%	9.8%	6.3%	—
Total Debt	₹29,169 Cr	₹34,322 Cr	₹36,079 Cr	₹57,839 Cr	+25.6%
Free Cash Flow	-₹3,276 Cr	-₹3,586 Cr	-₹662 Cr	-₹20,438 Cr	—

🟢 Revenue has grown at 7.3% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 12.5% a year over 3 years.

🔴 EPS has shrunk at 12.5% a year over 3 years.

🔴 ROE has fallen from 15.5% to 6.3% over 3 years (-9.3 pts).

🔴 Total Debt has grown at 25.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹74,559 Cr

Total Liabilities

₹58,502 Cr

Cash & Equivalents

₹6,080 Cr

Operating Cash Flow

-₹20,238 Cr

Capex

-₹200 Cr

Shareholding (proxy)

Institutional Holding

40.6%

Insider Holding

31.9%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹4

Ex-Dividend Date

17 Aug 2026

Analyst Consensus

Recommendations

6 Buy · 8 Hold · 1 Sell

Target Price (Mean)

₹369.67

+14.1% vs CMP

Target Range

₹274 – ₹440

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

3 mixed3 general

Gold Duty Hike Triggers Rally In Gold Loan Stocks: Manappuram Finance & Muthoot Finance Shares Surge 8%

Goodreturns, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Manappuram Finance shares jump 3% after Q1 profit soars 4x. Why Jefferies, Morgan Stanley raised target pr

The Economic Times, 12 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Stock to buy today: Manappuram Finance (₹334)

BusinessLine, 28 Sept

Gold Stocks With Strong Fundamentals: Top Picks to Consider

Univest, 18 Oct

Manappuram Finance Share Price news: Rs 369 and valuation

Univest, 24 Aug

Why Manappuram Finance shares falls 5% despite high gold prices?

BusinessLine, 27 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 10.6x · see Key things to watch ↑