Manappuram Finance Limited (MANAPPURAM) AI Stock Analysis

• Market Cap: ₹241.40B
• Dividend Yield: 0.8%
• Average Volume (3M): 124.77K
• Price to Earnings (P/E): 53.7
• Beta (1Y): 1.18
• Revenue Growth: -3.68%
• EPS Growth: -80.12%
• Country: IN
• Employees: 51,004
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.58
• 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): 3.05
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: ₹284.00 ▼(-8.19% Downside)

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

High gross margins

A gross margin above 90% signals durable cost advantage and pricing power in core gold-lending operations. This high margin buffer supports absorption of credit costs, funds product expansion and cross-sell, and sustains profitability even if funding costs rise over a multi-quarter horizon.

Extensive branch network

A wide physical distribution network creates a structural competitive moat for gold loans and microfinance, enabling customer reach in underserved areas, steady originations, and scale economies. It also supports long-term cross-selling of ancillary services and customer retention.

Product diversification & partnerships

Diversified credit and fee-income streams plus partnerships reduce reliance on a single product cycle. Strategic ties with insurers and tech platforms bolster distribution, lower acquisition costs, and improve resilience versus pure gold-loan peers over multiple quarters.

Negative Factors

High leverage

Significant leverage raises structural financial risk for an NBFC: higher interest burden, sensitivity to funding spreads and liquidity shocks, and constrained capacity for new lending or absorbing stress. It narrows strategic flexibility and increases probability of capital actions.

Negative operating and free cash flow

Persistent negative operating and free cash flows undermine internal funding for loan growth and reserve building, increasing dependence on external borrowing. Over months this pressures liquidity, elevates refinancing risk, and may force deleveraging or costly capital raises.

Declining profitability and revenue

Falling net margins alongside negative revenue growth point to structural softness in earnings quality and demand. If sustained, this erodes return on equity, weakens internal capital generation, and curtails reinvestment capacity, harming medium-term growth and resilience.

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 generates revenue primarily through the interest earned on gold loans, which are secured against gold ornaments and coins. The company offers short-term loans to customers, allowing them to leverage their gold assets for liquidity. Key revenue streams include interest income from gold loans, fees from processing loans, and revenue from ancillary services such as insurance products and money transfer services. The company benefits from a strong customer base and a significant market presence, allowing it to achieve economies of scale. Additionally, partnerships with insurance providers and technology platforms enhance its service offerings, further contributing to its earnings. The company also engages in strategic initiatives to expand its reach and diversify its financial products, thus bolstering its overall revenue growth.

Manappuram Finance Limited Financial Statement Overview

Summary

Manappuram Finance Limited demonstrates strong gross profit margins but faces challenges with declining net profit margins and negative revenue growth. The high leverage and declining return on equity suggest potential financial risks. The negative cash flows raise concerns about liquidity and cash management. Overall, the company needs to address profitability and cash flow issues to improve its financial health.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	96.42B	98.93B	88.04B	66.46B	60.49B	63.37B
Gross Profit	60.94B	63.52B	59.38B	44.58B	40.38B	41.18B
EBITDA	12.92B	19.33B	32.06B	22.45B	19.82B	24.87B
Net Income	8.00B	12.16B	21.89B	14.96B	13.28B	17.24B
Balance Sheet
Total Assets	0.00	492.05B	467.48B	395.04B	338.11B	313.38B
Cash, Cash Equivalents and Short-Term Investments	0.00	35.74B	28.30B	30.35B	25.85B	27.70B
Total Debt	0.00	360.79B	343.20B	291.67B	248.20B	233.19B
Total Liabilities	-124.49B	367.56B	351.71B	298.39B	254.26B	239.83B
Stockholders Equity	124.49B	124.32B	115.48B	96.45B	83.68B	73.07B
Cash Flow
Free Cash Flow	0.00	-6.62B	-35.19B	-32.76B	-5.86B	-6.73B
Operating Cash Flow	0.00	-4.67B	-33.83B	-31.03B	-4.23B	-6.19B
Investing Cash Flow	0.00	-1.25B	-5.93B	-6.16B	-1.93B	-1.86B
Financing Cash Flow	0.00	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: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 301.17, above the 50-day MA of 286.73, and above the 200-day MA of 266.03, indicating a neutral trend. The MACD of 5.68 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 45.34 is Neutral, 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
MUTHOOTFIN	74 Outperform	₹1.53T	21.00	―	0.68%	41.32%	56.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IIFL	66 Neutral	₹275.95B	32.13	―	―	8.01%	-20.87%
POONAWALLA	56 Neutral	₹375.68B	164.92	―	―	34.63%	-48.50%
LICHSGFIN	55 Neutral	₹290.60B	5.26	―	1.87%	4.79%	13.08%
M&MFIN	52 Neutral	₹484.63B	18.40	―	2.83%	―	―
MANAPPURAM	49 Neutral	₹241.40B	53.75	―	0.80%	-3.68%	-80.12%

Manappuram Finance Limited Corporate Events

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.

Manappuram Finance Transfers Unclaimed Shares to IEPF

Manappuram Finance Limited has announced the transfer of equity shares, for which dividends have not been claimed for seven consecutive years or more, to the Investor Education and Protection Fund (IEPF). This move is part of regulatory compliance to ensure unclaimed dividends are utilized for investor education and protection. The transfer of these shares could impact shareholders who have not claimed their dividends, as their shares will now be managed by the IEPF, potentially affecting their investment holdings.

Manappuram Finance Releases Q2 FY 2025-26 Results Conference Call Recording

Manappuram Finance Limited announced the availability of the audio recording for their Q2 FY 2025-26 results conference call, which took place on October 30, 2025. This move allows stakeholders and interested parties to access detailed insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market perception.