29 Nov 2021

Manappuram Finance Credit Analysis

MAFIL has a strong retail franchise, especially in South India, supported by its long-standing presence in the gold loan business. The promoter has an established track record of operating in the gold loan segment and is actively engaged in the company’s operations.

author dp
Team INRBonds
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Founded in July 1992 and promoted by Mr V P Nandakumar, Manappuram Finance (MAFIL) is the flagship company of the Manappuram group. It is a non-deposit-taking NBFC that provides finance against personal gold ornaments. The company went public in August 1995, with shares listed on the stock exchanges of Chennai, Kochi, and Mumbai (Bombay Stock Exchange and National Stock Exchange). Over the past four years, the Manappuram group has diversified into other businesses such as microfinance, vehicle finance, loans against property, and affordable housing finance. It also has presence in insurance broking business.

Manappuram Finance has been rated as AA by CRISIL, and AA- by ICRA.

 

Parameters (Rs billion)

Q2FY22

Q1FY22

Q2FY21

NII

10.4

10.716

9.95

PAT

3.7

4.37

4.05

AUM

284

248

269

Gold Loan AUM

187

165

197

ROE (%)

18.9

23.3

26.1

CRAR (%)

32

34

25

GNPA (%)

1.60%

2.00%

1.10%

NNPA (%)

1.30%

1.60%

0.70%

 

MAFIL bond traded yield

Date

ISIN No

Coupon (%)

Yield (%)

Maturity Date

22-11-21

INE522D07BE6

9.75

4.40

31-12-21

12-11-21

INE522D07AY6

0

7.00

06-03-22

22-10-21

INE522D07BG1

9.25

4.60

14-02-22

08-10-21

INE522D07BS6

8.35

4.60

18-02-22

01-10-21

INE522D07BE6

9.75

4.50

31-12-21

15-09-21

INE522D07BG1

9.25

4.75

14-02-22

14-09-21

INE522D07BG1

9.25

4.75

14-02-22

06-09-21

INE522D07BE6

9.75

4.45

31-12-21

 

Reputed franchise and experienced senior management team -MAFIL has a strong retail franchise, especially in South India, supported by its long-standing presence in the gold loan business. The promoter has an established track record of operating in the gold loan segment and is actively engaged in the company�s operations.

Operational efficiency- On yearly basis, its net interest income rose by 4.5% while it declined by 3% on quarterly basis. Net profit decreased by 9% by yearly while decreased by 15% on quarterly basis.

Comfortable Capitalization- MAFIL�s net worth rose to rose to Rs 76.68 billion as of 30th Sep 21 from Rs 64.50 billion as of 30th Sep 20. In the same line, capital adequacy ratio rose to 32% from 25% during the above-mentioned period.�