At a Glance
Manappuram is India’s second-largest gold loan NBFC — and unlike your local jeweller uncle, they have 5-year CAGR credibility. But after a dream rally, FY25 ended with a shocking quarterly loss. Blip or warning? Let’s melt it down.
1. 🧱The Business: 70% Gold, 30% Ambitions
Manappuram Finance =your friendly neighbourhood pawnbroker + NBFC ambitions.
Core Segments:
- Gold Loans🪙 (70% of book): Short-term, secured lending. Margin-heavy, risk-light.
- Asirvad Microfinance👩🌾: Big rural borrower base, also contributed to recent volatility.
- Others: Includes vehicle finance, LAP, and housing loans.
🏦 They operate pan-India with 5,000+ branches, but gold dominance = Southern stronghold.
2. 📉The Quarter that Shocked Dalal Street
Let’s go straight to March 2025 numbers:
| Metric | Q4 FY25 |
|---|---|
| Revenue | ₹2,360 Cr |
| Net Profit | -₹203 Cr ❌ |
| EPS | -₹2.26 |
| Financing Margin | -7% |
What
went wrong?
- Provisioningdue to stress in microfinance
- Spike inoperating expenses(₹1,638 Cr, up 80% YoY)
- Core margin tanked from 35% in prior quarters to negative territory
This was theirfirst quarterly loss in a decade.
Manappuram basically tripped on its own loan book — while trying to sprint.
3. 📈Long-Term Financials Still Sparkle
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | ROE | EPS |
|---|---|---|---|---|
| FY21 | 6,331 | 1,725 | 26% | ₹20.37 |
| FY22 | 6,061 | 1,329 | 17% | ₹15.70 |
| FY23 | 6,700 | 1,500 | 17% | ₹17.67 |
| FY24 | 8,848 | 2,197 | 21% | ₹25.86 |
| FY25 | 10,041 | 1,173 | 10% | ₹14.37 |
🧠 So despite the shocker in Q4, FY25 revenue hit arecord highof ₹10,000+ Cr.
But net profit nearly halved.
4. 🔬Peer Comparison: Value Pick or Gold-Plated Trap?
| Company | P/E | ROE | Price | GNPA | Dividend Yield |
|---|---|---|---|---|---|
| Bajaj Finance | 33.8x | 19% | ₹905 | ~1.1% | 0.49% |
| Muthoot Finance | 19.6x | 17% | ₹2,606 | ~2.5% | 1.00% |
| L&T Finance | 18x | 9% | ₹190 | ~3.2% | 1.45% |
| Manappuram | 19.6x | 10% | ₹271 | ~2–3% est. | 1.31% |
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