Good results from Manappuram Finance. Went through the results and PPT, yet to listen to the concall.
FY23 ROE 16.6%, Q4 ROE 17.5%
YoY AUM growth 17.2% (In spite of Gold AUM de-growth by 2% YoY)
Non gold to gold AUM ratio: 44% vs 56%
YoY PAT growth 59%
Consol CRAR 32%
Cost of borrowings steady at 8.2%
Asirvad:
YoY AUM growth 43%
Credit costs for FY23 down to 2.7% from 5.6% last year
NIMs steady YoY
Collection efficiencies remain strong at 104%
GNPAs down to 2.7% from 6.7% a quarter ago; NNPA 1.2%
Capital adequacy ratio 20%
Q4 ROE annualised 26%, FY23 ROE 17%
Cost of borrowing steady at 10%
27% YoY increase in no of borrowers (All MFIs are reporting strong growth nos)
Housing Finance GNPA nos have come down significantly. HFC, VF, MSME/personal finance are all showing decent growth with improving credit quality in line with most financial instruments.
Manappuram is trading at 0.96x PB now. With some uptick in GLs and a strong MFI cycle, consol quarterly annualized ROEs can start hitting 20% very soon. The ED overhang, while related to a very old case, can be a near term overhang for sentiments around the stock. But at 0.96x PB, most of the bad news seems already in the price.
Disc: Invested and biased.
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