Manappuram Finance's target Rs 214: IIFL Securities's Top Stock to Buy Today

IIFL Securities has issued a buy recommendation for Manappuram Finance, setting a target price of Rs 214. At the time of the recommendation, the stock was trading at Rs 208.31. This implies an upside potential of approximately 2.8%. The brokerage firm believes that Manappuram Finance's strong gold loan portfolio, improving asset quality, and expanding retail presence will drive its future growth.

About Manappuram Finance:

Manappuram Finance Limited is a leading non-banking financial company (NBFC) in India. Founded in 1992, the company is headquartered in Valapad, Thrissur district of Kerala. It offers a range of financial services, including gold loans, microfinance, vehicle loans, home loans, and insurance products. Manappuram Finance has a widespread branch network across India, with over 4,500 branches as of March 31, 2023. The company is listed on the National Stock Exchange (NSE) of India.

52 Week Price Trend:

Manappuram Finance's current market price (CMP) of Rs 208.31 indicates a significant premium over its 52-week high of Rs 193.35. However, it is still below the company's all-time high of Rs 265.90. Despite witnessing a steady recovery from its 52-week low of Rs 101.7, the stock's current valuation implies potential risks for investors, as it may be overvalued compared to its historical performance. Prudent investors should carefully consider the company's financial health and future prospects before making any investment decisions.

Stratzy's MOST Analysis:

Manappuram, evaluated using Stratzy's MOST framework, received an AA- rating. This rating reflects the company's strong management, positive outlook, high safety, and positive trend. The AA- rating indicates that Manappuram has relatively low fundamental risks, making it a relatively safe investment option. Investors should note that this rating is not a recommendation to buy or sell the stock, but rather a reflection of the company's fundamentals as assessed by Stratzy.

Company's Fundamentals:

Manappuram Finance (NSE:MANAPPURAM) is a non-banking financial company (NBFC) listed on the National Stock Exchange (NSE) of India. Its current stock price implies a price-to-earnings (PE) ratio of 7.55, indicating that its market value is 7.55 times its annual earnings per share. The price-to-book (PB) ratio, which compares the current market value of the company to its book value, is 1.46. This suggests that the company is currently trading at a premium to its book value. Additionally, Manappuram Finance offers a dividend yield of 1.65%, which represents the annual dividend payment as a percentage of the current stock price. This yield provides investors with a potential source of passive income.

Fundamental and Technical information provided in this blog were last updated on 27 Jun, 2024

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