That makes sense, and its reflecting in NPA increase of manappuram for last 5 years. However gross NPA is still 1% of total assets which is noway near alarming levels and doesnt alone justify such low P/B valuations. There is more to such low valuations than risky assets, and may be regulatory uncertainty is keeping things low. For eg: Gold monetization scheme will hit their business, so certainly headwinds facing gold finance business.
Disc: Invested at CMP.
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