Interesting data points.
Looking at parameters like:
NPA level (less than 2%),
Price to Book (less than 1.5),
Price to Earning ( around 7),
Sales Growth rate (5Y around 15% CAGR),
Profit Growth Rate (5Y around 18% CAGR),
Solid Capital adequacy (around 30%)
PEG ratio less that 1
Return on Equity (around 20%)
It seems like an experienced techie from Tier-1 IIT but employed at a salary of ITI fresher.
But looking at it under-performance over last 5 years (when rest of stocks in Indian Stock Market has moved to sky) - it seems perception among the masses (those who matters like large fund houses, well known Indian Investors etc.) is not yet good for Manappuram in recent times.
And without good perception, how long it will be on similar valuations - remains a guess.
Note: Got this investment note from Mr. Rajeev Agrawal, dated 24/05/2021 i.e. exactly 3 years back, when MCAP of Manappuram in USD terms was $1.863 billion. At today’s rate of USD/INR … It seems those FII’s who invested 3 years back gained nothing other than dividends.
Look forward to a catalyst, which will rerate Manappuram.
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