Manappuram Finance Limited (MANAPPURAM) AI Stock Analysis

• Market Cap: ₹212.41B
• Dividend Yield: 0.8%
• Average Volume (3M): 124.77K
• Price to Earnings (P/E): 27.1
• Beta (1Y): 1.25
• Revenue Growth: -3.68%
• EPS Growth: -80.12%
• Country: IN
• Employees: 51,004
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.80
• Shares Outstanding: 846,434,750
• 10 Day Avg. Volume: 165,223
• 30 Day Avg. Volume: 124,768
• PEG Ratio: -0.37
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 2.01
• P/FCF Ratio: -29.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 13.34
• Revenue Forecast (FY): ₹59.53B

• Rating: 49 Neutral
• Price Target: ₹255.00 ▼(-17.57% Downside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

The score is primarily held back by weakening financial quality (declining profitability, high leverage, and negative operating/free cash flow). Technicals are also soft with the stock trading below key short-term averages and a low RSI, while valuation further pressures the rating due to a high P/E and modest dividend yield.

Positive Factors

Secured gold-loans business model

Gold-backed lending is collateralized with short tenors and frequent renewals, producing repeat customers and predictable interest income. This durable business model reduces unsecured credit risk, supports high portfolio turnover, and sustains cash generation potential across credit cycles.

Very high gross margins

Consistently >90% gross margins indicate strong lending spreads and tight direct cost control on core products. Such a margin buffer gives the company structural resilience to absorb higher funding costs or credit losses and underpins long-term operating leverage if origination volumes are preserved.

Large origination scale

A workforce of over 51,000 signals broad distribution and servicing reach across retail markets. Scale supports customer acquisition, collection capabilities and cross-sell, creating a durable competitive advantage in retail secured lending that is costly and time-consuming for smaller entrants to replicate.

Negative Factors

High leverage

Elevated leverage increases refinancing and interest-rate risk for an NBFC whose margins depend on funding spreads. Structurally high debt limits financial flexibility, amplifies earnings volatility through funding-cost shifts, and constrains the company’s ability to invest or absorb prolonged stress.

Negative operating & free cash flow

Persistent negative operating and free cash flows signal weak cash conversion despite reported profits. This structural cash shortfall forces reliance on external funding, raises refinancing and liquidity risk, and limits capacity to de-lever, invest in growth, or return capital over coming quarters.

Declining revenue and EPS

Negative revenue growth and a steep EPS decline reflect weakening demand or margin compression in core retail lending. If persistent, this erodes return on equity, undermines scale economics and reduces reinvestment capacity, posing a structural threat to medium-term earnings recovery.

Manappuram Finance Limited Business Overview & Revenue Model

Company Description

Manappuram Finance Limited, a gold loan non-banking financial company, provides retail credit products and financial services in India. It offers loans against the security of used household gold jewelry; gold loans and online gold loans; microfinance loans and other financial services to low-income populations in rural and semi-urban areas; loans for building, extension, purchase, and improvement of homes; life and non-life insurance products; and IT solutions. The company also provides fee-based services, which include money transfer, foreign exchange, and depository services. In addition, it offers vehicle and equipment finance, including auto loans, as well as two-wheeler, construction equipment, and farm equipment finance. The company serves retail, microfinance, small and medium enterprises, and commercial customers. As of March 31, 2022, it operated 3,526 branches in 22 states and 6 Union Territories. The company was formerly known as Manappuram General Finance and Leasing Limited and changed its name to Manappuram Finance Limited in 2011. Manappuram Finance Limited was founded in 1949 and is based in Thrissur, India.

How the Company Makes Money

Manappuram Finance makes money primarily by lending money and earning a spread between the interest it charges borrowers and its own cost of funds. Its key revenue stream is interest income from gold loans, where customers pledge gold ornaments as collateral and repay principal plus interest over the loan term; the secured nature of these loans supports high volumes and relatively short tenors, enabling frequent loan renewals and repeat borrowing. In addition to core interest income, the company earns fee-based income associated with loan origination, processing, documentation, and other service charges that may be collected alongside lending activities. The company’s profitability is also influenced by funding mix and cost of borrowing (e.g., bank borrowings, market instruments, or other liabilities where applicable), operating efficiency across branches, credit losses (including any losses on default and recovery), and collateral management; in gold loans specifically, timely repayment behavior and the realizable value of pledged gold (including outcomes of gold auctions for overdue accounts) can affect realized income and loss provisioning. If the company operates additional lending lines beyond gold loans (e.g., other retail or MSME credit) through itself or subsidiaries, those businesses similarly contribute via interest income and related fees; specific segment-level contribution details are null.

Manappuram Finance Limited Financial Statement Overview

Summary

Strong gross margins are offset by a sharp decline in net profit margin, negative revenue growth, high leverage (elevated debt-to-equity), and weak liquidity signals from negative operating and free cash flows.

Income Statement

Manappuram Finance Limited shows a strong gross profit margin consistently above 90%, indicating effective cost management. However, the net profit margin has decreased significantly in the latest year, reflecting reduced profitability. The revenue growth rate has also turned negative, suggesting challenges in maintaining sales momentum.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage, which could pose financial risks. Return on equity has decreased, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows indicating potential liquidity issues. The free cash flow to net income ratio is positive, but the overall cash flow growth is negative, highlighting challenges in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	93.07B	98.93B	88.04B	66.46B	60.49B	63.37B
Gross Profit	56.90B	63.52B	59.38B	44.58B	40.38B	41.18B
EBITDA	12.04B	19.33B	32.06B	22.45B	19.82B	24.87B
Net Income	4.49B	12.16B	21.89B	14.96B	13.28B	17.24B
Balance Sheet
Total Assets	516.57B	492.05B	467.48B	395.04B	338.11B	313.38B
Cash, Cash Equivalents and Short-Term Investments	25.09B	35.74B	28.30B	30.35B	25.85B	27.70B
Total Debt	383.66B	360.79B	343.20B	291.67B	248.20B	233.19B
Total Liabilities	389.37B	367.56B	351.71B	298.39B	254.26B	239.83B
Stockholders Equity	127.12B	124.32B	115.48B	96.45B	83.68B	73.07B
Cash Flow
Free Cash Flow	-25.70B	-6.62B	-35.19B	-32.76B	-5.86B	-6.73B
Operating Cash Flow	-24.87B	-4.67B	-33.83B	-31.03B	-4.23B	-6.19B
Investing Cash Flow	-4.00B	-1.25B	-5.93B	-6.16B	-1.93B	-1.86B
Financing Cash Flow	17.15B	11.32B	40.25B	38.49B	4.38B	585.15M

Manappuram Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 309.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MANAPPURAM, the sentiment is Negative. The current price of 309.35 is above the 20-day moving average (MA) of 281.64, above the 50-day MA of 293.35, and above the 200-day MA of 278.95, indicating a bearish trend. The MACD of -12.32 indicates Positive momentum. The RSI at 25.74 is Positive, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MANAPPURAM.

Manappuram Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MUTHOOTFIN	66 Neutral	₹1.35T	13.64	―	0.68%	41.32%	56.12%
IIFL	64 Neutral	₹201.71B	13.98	―	―	8.01%	-20.87%
LICHSGFIN	55 Neutral	₹275.77B	5.31	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹443.72B	118.58	―	2.83%	―	―
MANAPPURAM	49 Neutral	₹212.41B	27.09	―	0.80%	-3.68%	-80.12%
POONAWALLA	49 Neutral	₹344.09B	64.91	―	―	34.63%	-48.50%

Manappuram Finance Limited Corporate Events

RBI Fines Manappuram Finance for Breach of Variable Pay Rules

Manappuram Finance Limited has disclosed that the Reserve Bank of India has imposed a monetary penalty of Rs 2.70 lakh on the company for non-compliance with guidelines on the deferral of variable pay for two key managerial personnel for FY 2024-25. The lapse was identified during the RBI’s statutory inspection, and while the company notes that the fine will not materially affect its financials or operations, the action underscores tighter regulatory scrutiny of compensation practices at NBFCs and may prompt enhanced governance measures around pay structures.

Manappuram Finance CEO Deepak Reddy Takes Overseas Medical Leave

Manappuram Finance has disclosed that its Chief Executive Officer and key managerial personnel, Deepak Reddy, has taken a medical leave of absence effective February 25, 2026, to travel overseas for treatment for an expected period of 90 to 120 days. The announcement, made under SEBI’s disclosure norms and shared with multiple stock exchanges, signals a temporary change at the top leadership level, which stakeholders will watch closely for any impact on management continuity and strategic execution during his absence.

The company has indicated that this update has been made available on its website in line with regulatory requirements, reinforcing its emphasis on transparent communication with investors and regulators. While the disclosure does not specify interim leadership arrangements, the formal notification aims to ensure that markets remain informed about the CEO’s temporary unavailability and the potential implications for corporate governance oversight in the near term.

Manappuram Finance Uploads Q3 FY26 Results Call Transcript for Investor Access

Manappuram Finance Limited has notified the stock exchanges that the transcript of its Q3 FY 2025-26 results conference call, held on January 29, 2026, has been uploaded to the company’s website. The disclosure enhances transparency for investors and other stakeholders by providing detailed access to management’s discussion of quarterly performance and outlook, and has been formally placed on record with BSE, NSE and India International Exchange.

Manappuram Finance Uploads Q3 FY26 Earnings Call Audio for Investors

Manappuram Finance Limited has notified the stock exchanges that the audio recording of its Q3 FY 2025-26 results conference call, held on January 29, 2026, has been uploaded to the company’s website. By making the recording publicly accessible, the company is enhancing disclosure and transparency for investors and other stakeholders, facilitating broader access to management’s commentary on quarterly performance and outlook.

Manappuram Rejects Report of Regulatory Delay in Bain Capital Deal

Manappuram Finance Limited has clarified to stock exchanges that a media report claiming its proposed deal with Bain Capital entities has been delayed due to Indian regulatory concerns is factually incorrect and speculative. The company stated that the proposed investment by BC Asia Investments XIV Limited and BC Asia Investments XXV Limited, which entails acquisition of joint control with existing promoters over Manappuram Finance and its key subsidiaries, is progressing through the regulatory process, with Reserve Bank of India approval for the change in management already received for the parent company and two subsidiaries, and final RBI approval for change of control still pending but duly filed for, with no additional undisclosed information required under SEBI disclosure norms at this stage.

Manappuram Finance Calls EGM to Raise Borrowing Limits and Revise Director Pay

Manappuram Finance Limited has called an Extraordinary General Meeting (EGM) on January 22, 2026, to be conducted via video conferencing, seeking shareholder approval to increase its borrowing limits beyond the aggregate of its paid-up share capital, free reserves and securities premium, and to create charges or mortgages on its properties to secure such borrowings under applicable provisions of the Companies Act, 2013. The meeting will also consider a revision in the remuneration of Whole-time Director Dr. Sumitha Nandan, with remote e-voting arranged through CDSL, signaling the company’s intent to expand its funding flexibility for future growth while adjusting its leadership compensation structure, developments that could influence its capital structure and governance framework for stakeholders.

Manappuram Finance Hikes Borrowing Limit to Rs 75,000 Crore, Names New Group CFO

Manappuram Finance Limited’s board has approved an increase in the company’s overall borrowing limit to up to Rs 75,000 crore and authorised the creation of corresponding charges, mortgages and other security over its present and future assets to back these borrowings, signalling scope for substantial balance sheet expansion and future funding activities. The board also resolved to convene an extraordinary general meeting on January 22, 2026 to seek shareholder approval for these enhanced borrowing powers, appointed Buvanesh Tharashankar as Group Chief Financial Officer and key managerial personnel alongside the continuing CFO, and cleared an additional equity investment of up to Rs 250 crore in subsidiary Asirvad Micro Finance Limited, underscoring the group’s growth plans in its core lending and microfinance businesses.

Manappuram Finance Boosts Borrowing Limits, Names Group CFO and Raises Stake in Microfinance Arm

Manappuram Finance Limited’s board has approved a significant increase in its borrowing capacity, authorising total borrowings and related security creation of up to Rs 75,000 crore, subject to shareholder approval, to support the company’s funding requirements and future growth. The board also resolved to convene an Extraordinary General Meeting on January 22, 2026 to seek shareholder consent for these measures, appointed Mr. Buvanesh Tharashankar as Group Chief Financial Officer and Key Managerial Personnel alongside existing CFO Ms. Bindu A.L., and cleared an additional equity investment of up to Rs 250 crore in its microfinance subsidiary Asirvad Micro Finance Limited, underscoring a strategic push to expand its balance sheet and strengthen its microfinance business.