financier for gold loans The increased emphasis on diversification by Manappuram Finance Ltd. appears to be connecting with its investors.
The company’s management stated at a recent analyst meeting that the company’s focus is still on being a diversified NBFC with a 50% asset under management (AUM) contribution from its non-gold lending division. Systematix Shares & Stocks (India) Ltd. analysts wrote in a research dated March 22 that “the management sounded optimistic of attaining its guidance of 20% CAGR in consolidated AUM over the next several years (primarily supported by greater growth in non-gold business) with a sustainable RoE of 20%.”
As such, in the last four trading sessions, the stock has risen nearly 7%. The intense competition and volatility in the gold loan business have weighed on the company’s earnings performance lately.