Manappuram Finance Ltd.
NSE: MANAPPURAMManappuram Finance Ltd.: A 30-second snapshot
Manappuram Finance, a gold-lending NBFC classified alongside banking-sector peers, trades at Rs 311.10 with a trailing PE of 26.28 and ROE of 6.97%. Q4 FY26 PAT surged 299.2% YoY to Rs 405 cr, lifting the stock 36.08% over the past year, while the forward PE of 10.47 implies analyst consensus expects a sharp step-up in normalised earnings. Two concurrent governance events, a SEBI warning against the CMD and a promoter change to BC Asia Investments, add an oversight dimension not visible in the earnings numbers alone.
P/E
26.3
Forward P/E
10.5
ROE
+7.0%
Debt / Equity
360.19
Profit Margin
+24.0%
Div. Yield
+0.6%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
45/100
News
8 headlines · 4 positive · 1 negative
Manappuram Finance Ltd. gets a surprise upgrade after Q4 beat — Jefferies sees up to 17% upside, but here's the catch - Zee Business
Zee Business
Manappuram Finance Q4 Results: PAT rises 299.2% to ₹405 cr - BusinessLine
BusinessLine
Manappuram Finance Q4 Results: Profit Surges; Declares Dividend, Check Record Date - NDTV Profit
NDTV Profit
Manappuram Finance Limited Discloses SEBI Warning Against CMD in Personal Capacity - Studycafe
Studycafe
BC Asia Investments Takes Control of Manappuram Finance, Becomes New Promoter - Whalesbook
Whalesbook
Recent context
- ·Jefferies retained Outperform after Q4 FY26 results, citing the 299.2% PAT jump to Rs 405 cr as a positive surprise; 14 analysts carry a mean rating of 2.21 on a 1-5 scale (lower = more constructive).
- ·BC Asia Investments completed a promoter acquisition in April 2026, becoming the new controlling shareholder, a structural change that typically triggers fresh regulatory and compliance disclosures for an NBFC.
- ·A SEBI warning was issued against the CMD in a personal capacity and disclosed by the company in late April 2026; the warning is categorised as personal rather than institutional, though the distinction carries its own regulatory context for an NBFC operating under RBI oversight.
Strengths
- +One-year price return of 36.08% with current price Rs 311.10 above both the 50-DMA (Rs 275.48) and 200-DMA (Rs 282.12); RSI of 62.73 is in neutral-high territory and the 52-week drawdown from the high is only 2.95%.
- +Revenue grew 107.7% over five years reflecting sustained expansion of the gold-loan book; forward PE of 10.47 versus trailing PE of 26.28 indicates analyst consensus prices in a significant earnings normalisation ahead.
- +Q4 FY26 PAT of Rs 405 cr (+299.2% YoY) was accompanied by a dividend declaration; Jefferies retained Outperform after the results, citing the beat as a positive surprise.
- +News sentiment across 8 articles is 4 positive, 3 neutral, 1 negative, with the Q4 beat dominating recent flow; nearest technical support sits at Rs 294.88, approximately 5.2% below current price.
Weaknesses
- −ROE of 6.97% is the lowest among the six banking-sector peers in the comparison set, below Bajaj Finance 17.91%, Axis Bank 13.15%, and HDFC Bank 13.82%, and exceeded 15% in only 2 of tracked years.
- −FCF was negative in all available tracked years (0 positive) and the debt trend is rising; D/E of 360.19 means the business remains dependent on continuous access to wholesale funding.
- −SEBI issued a warning against the CMD in a personal capacity and the controlling promoter changed to BC Asia Investments in April 2026, two concurrent governance events whose operational impact on NBFC regulatory standing is not yet fully reflected in reported metrics.
- −Quality score of 46 ranks 4th of 6 in the sector peer group with a consistency score of 7, placing Manappuram below Axis Bank (53) and Bajaj Finance (53) on composite quality assessment.
Open questions
- ?Does the 299.2% Q4 PAT jump reflect a one-period reversal of provisioning or write-backs, or does it signal a durable improvement in the gold-loan book's credit quality?
- ?How does the promoter transition to BC Asia Investments affect the NBFC's long-term funding relationships, board composition, and RBI compliance obligations?
- ?Given that ROE has exceeded 15% in only 2 of tracked years despite 107.7% five-year revenue growth, what structural factors constrain return on equity relative to the peer group?
- ?Does the trailing PE of 26.28 versus forward PE of 10.47 reflect a genuine consensus view of a step-change in earnings, or does it embed optimism that recent provisioning reversals may not repeat?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MANAPPURAM | Manappuram Finance Ltd.You're viewing | 26.3 | +7.0% | 46 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹311.10
SMA 50
₹275.48
SMA 200
₹282.12
RSI (14)
62.7 (neutral)
From 52w high
-3.0%
1Y return
+36.1%
3M return
+0.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 360.19 is structurally elevated; for a gold-lending NBFC this reflects the leveraged book model, but FCF was negative in all tracked years (0 of available years positive), indicating the business consistently consumed more cash than it generated operationally.
- highROE of 6.97% is well below all five banking-sector peers: Bajaj Finance 17.91%, Bajaj Finserv 14.60%, Axis Bank 13.15%, HDFC Bank 13.82%, HDFC Life 11.28%. ROE exceeded 15% in only 2 of tracked years, and the debt trend is rising, indicating return on equity has not been sustained at levels typical of the peer group.
- mediumQuality score of 46 ranks 4th of 6 in the banking sector peer group. Consistency score of 7 reflects uneven earnings quality. With a rising debt trend and zero FCF-positive years, the composite score sits below higher-quality peers such as Axis Bank (53) and Bajaj Finance (53).
- mediumSEBI issued a warning against the CMD in a personal capacity (disclosed by the company on or around 28 April 2026). Separately, BC Asia Investments became the new promoter in April 2026, representing a material change in controlling ownership. Both are recent governance events with potential implications for NBFC regulatory standing.
Cross-section contradictions
- Trailing PE of 26.28 sits above HDFC Bank (17.14) and Axis Bank (14.74) despite a ROE of 6.97%, well below those peers at 13.82% and 13.15% respectively. A higher multiple on lower returns is atypical without a clear earnings-growth catalyst visible in the fundamentals.
- Q4 PAT rose 299.2% YoY driving a 36.08% one-year price gain, yet trailing ROE of 6.97% and zero FCF-positive years suggest the profit surge has not yet translated into sustained return improvement, creating uncertainty about whether the re-rating reflects a structural shift or a one-period recovery.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days