Manappuram Finance

I’ve been tracking Manappuram Finance for a long time, and I’ve noticed that analysts tend to downgrade the stock quickly with each new crisis. For example, during the Covid pandemic, it was downgraded to Rs. 70. Every time there’s a challenge, the downgrades come fast, but once the risks fade and the stock price rebounds, the valuations are upgraded again. This makes it a very volatile stock, often swinging from its 52-week low to high within a year. The high number of free-floating shares in the market also adds to the volatility. Additionally, the company seems to face repeated challenges—whether it’s Covid, the ED Fiasco, or microfinance issues. However, on the positive side, their gold business is performing well, they’re diversifying, and the management consistently navigates through crises. The book value continues to grow, and they pay strong dividends

I buy on each dip