Manappuram Finance

For Gold, it seems Golden Days will continue the way countries are getting ready to bombard each other.

But b/w Manappuram and Muthoot … It seems Muthoot not only relatively stable but gaining as well, whereas Manappuram is behaving like a penny stock where on a bad news it corrects more but gain less on a good news.

Considering the growth (in revenue as well as profitability) and ROE, both of these companies are neck to neck … but when it comes to other ratios like P/E, P/B etc… Muthoot is more than double to that of Manappuram.

Considering both of these companies haven’t diluted equity (no bonus, no stock-split etc. recently) … Another interesting fact which I was observing (just for ease of comparing these two) – Muthoot’s CMP was less that 10 times of Manappuram’s CMP.

However, from September 2024 – CMP of 1 Muthoot share > 10*(CMP of 1 Manappuram share).

Would love to hear from fellow members, any specific reasons, for such consistent underperformance of Manappuram vs Muthoot.

Is it that Manappuram is turning into a value Trap, whereas Muthoot is turning out be Consistent Compounders (may be at 15%-20% per year in market price).

Disc: Invested from a long time (at 80, 100, 120… and even at 200) in Manappuram.