India’s financial landscape has undergone a transformation over the past decade, and one of the most resilient and quietly evolving players in the NBFC space has been Manappuram Finance Ltd. While long known for its core gold loan business, the company has steadily diversified into microfinance, vehicle finance, and housing, creating a well-rounded lending portfolio. With strong roots in rural and semi-urban India, improving asset quality, and healthy profitability metrics, Manappuram is transitioning from a monoline lender to a full-fledged diversified NBFC with growth optionality.
But does Manappuram Finance offer a compelling case for long-term investors? Let’s delve deeper.
Stock overview
| Ticker | MANAPPURAM |
| Industry/Sector | Financial Services (NBFC) |
| CMP | 277.50 |
| Market Cap (₹ Cr.) | 23,466 |
| P/E | 19.27 (Vs Industry P/E of 21.41) |
| 52 W High/Low | 284.90 / 138.35 |
| EPS (TTM) | 14.37 |
| Dividend Yield | 1.27% |
About Manappuram Finance
Founded in 1949 and headquartered in Kerala, Manappuram Finance Ltd. is one of India’s leading non-banking financial companies (NBFCs). It has built its reputation as the second-largest gold loan player in the country (after Muthoot Finance), serving millions of customers across ~5,000 branches.
Over the years, the company has diversified into other retail lending verticals, including microfinance, vehicle loans, housing finance, and SME lending through its subsidiaries. With a strong presence in Tier 2 and Tier 3 cities, Manappuram has maintained its relevance and scale by focusing on underserved credit segments.
Key business segments
Manappuram Finance operates primarily in the following key business segments:
- Gold Loans – Core business, offering short-tenure, fully secured loans against gold ornaments.
- Microfinance – Through Asirvad Microfinance (subsidiary), offering unsecured group loans to women borrowers.
- Vehicle & Equipment Finance – Focused on used commercial vehicles and tractors.
- Affordable Housing & SME Loans – Growing books targeting self-employed individuals and small business owners.
Primary growth factors for Manappuram Finance
Manappuram Finance key growth drivers:
- Strong Rural Penetration: Deep presence in underbanked regions gives it access to loyal, repeat customer base.
- Gold Price Support: High and stable gold prices help expand loan-to-value (LTV) and limit credit risk in the gold portfolio.
- MFI & Vehicle Finance Scale-Up: Non-gold AUM is rising steadily, aiding long-term growth and diversification.
- Cost Efficiency: Operational leverage from digitization and branch infrastructure keeps cost-to-income ratio in check.
- Regulatory Clarity: RBI’s framework for gold and MFI lending segments provides greater stability for growth planning.
Detailed competition analysis for Manappuram Finance
Key financial metrics – Q4 FY25;
| Company | Revenue(₹ Cr.) | Net Interest Margin (%) | Cost of Borrowing (%) | CRAR Ratio (%) | P/E (TTM) |
| Manappuram Finance | 2359.73 | 14.80% | 9.40% | 20.90% | 80.67 |
| Aditya Birla Capital | 12214.04 | 6.07% | 7.70% | 18.22% | 20.01 |
| Shriram Finance | 11454.23 | 8.25% | 8.80% | 20.66% | 12.81 |
| Muthoot Finance | 5621.75 | 11.27% | 8.70% | 23.71% | 19.84 |
| L&T Finance | 4022.92 | 8.15% | 7.84% | 22.27% | 17.71 |
Key insights on Manappuram Finance
- Gold loan yields – Yields remain robust due to short tenure and strong collateral, helping the company maintain high NIMs.
- Diversification – It is gaining traction – non-gold business now contributes over 40% of total AUM, up from ~20% a few years ago.
- Strong liquidity – Low cost of funds (due to AAA credit rating) support healthy margins.
- Normalized credit costs – Credit costs have normalized in the MFI segment and vehicle finance post-COVID, aiding profitability and improving RoA.
- Focus on digital collections – Focused approach and analytics-driven underwriting is helping improve asset quality and scalability.
Recent financial performance of Manappuram Finance for Q4 FY25
| Metric | Q4 FY24 | Q3 FY25 | Q4 FY25 | QoQ Growth (%) | YoY Growth (%) |
| Revenue (₹ Cr.) | 2348.10 | 2559.72 | 2359.73 | -7.81% | 0.50% |
| EBITDA (₹ Cr.) | 1575.55 | 1368.96 | 721.91 | -47.27% | -54.18% |
| EBITDA Margin (%) | 67.10% | 53.48% | 30.59% | -2289 bps | -3651 bps |
| PAT (₹ Cr.) | 563.51 | 278.46 | -203.18 | -172.97% | -136.06% |
| PAT Margin (%) | 24.00% | 10.88% | -8.61% | -1949 bps | -3261 bps |
| Adjusted EPS (₹) | 6.63 | 3.33 | -2.26 | -167.87% | -134.09% |
Manappuram Finance financial update (Q4 FY25)
Financial performance
- Q4 FY25 revenue stood at ₹2,360 cr, up 0.5% YoY; FY25 revenue at ₹10,041 cr, up 13.5% YoY.
- Q4 FY25 net loss of ₹203 cr vs. ₹546 cr profit YoY; FY25 PAT fell 45% YoY to ₹1,204 cr, mainly due to stress in the microfinance segment.
- Standalone AUM reached ₹43,034 cr; GNPA at 2.8%, NNPA at 2.5%, and CRAR at 30.9% as of March 31, 2025.
- Operating expenses rose due to employee incentives to improve collections.
Business highlights
- Gold Loans: AUM grew 19.3% YoY to ₹24,658 cr; online disbursals now form 82% of the gold loan book vs. 57% last year.
- Microfinance (Asirvad): AUM dropped 31% YoY to ₹8,189 cr; GNPA surged to 8.5% due to borrower overleveraging and collection challenges.
- Housing Finance: AUM grew 20.8% YoY to ₹1,824 cr; GNPA improved to 2.4% vs. 3.9% QoQ.
- Vehicle Finance: AUM grew 16.1% YoY to ₹4,773 cr; GNPA rose to 6.7%, led by stress in 2-wheeler loans.
- MSME: AUM rose 5.9% YoY to ₹3,079 cr; GNPA increased to 5.1%.
Outlook
- Expects ~20% AUM growth in gold loans for FY26; MFI contribution to overall book to decline.
- Asset quality in MFI is expected to improve gradually.
- Target ROE for FY26 is ~18%.
- Bain Capital to infuse ₹4,385 cr via equity and warrants, boosting capital position.
Recent Updates on Manappuram Finance
- Bain Capital Investment: Bain Capital is set to infuse ₹4,385 crore through equity and warrants, significantly strengthening Manappuram’s capital base.
- Business Shift Ahead: The company plans to reduce its microfinance exposure and focus on scaling its gold loan and secured lending businesses, aiming for an ROE of ~18% in FY26.
- RBI Relief: In Jan 2025, RBI lifted lending curbs on Asirvad Microfinance, allowing full loan disbursals and boosting Manappuram’s stock by ~5%.
Company valuation insights – Manappuram Finance
Manappuram Finance is trading at a TTM P/B of 1.88x, which is elevated versus its historical average, yet the stock has delivered a solid 29.9% return over the past year, outperforming the Nifty 50’s 5.7%.
This performance reflects investor confidence in the company’s shift toward secured lending, strong gold loan growth, and improving asset quality. The stock’s premium is supported by its robust capital adequacy, growing digital presence in gold loans, and the strategic investment by Bain Capital.
Applying a 1.5× multiple to our FY27E BVPS of ₹220 yields a 12-month target price of ₹330 (≈ 20% upside), and a 3-month target of ₹300 (≈ 9% upside), offering a favorable risk-reward profile as earnings normalize and return ratios improve.
Major risk factors affecting Manappuram Finance
- Regulatory tightening in gold or microfinance lending may impact volume growth or profitability.
- Asset quality pressure in unsecured lending (MFI, vehicle finance) can rise in a weak macro environment.
- Execution risk in scaling non-gold verticals without compromising underwriting discipline.
- Customer concentration in South India, making it vulnerable to regional disruptions (weather, politics, etc.).
Technical analysis of Manappuram Finance share
Manappuram Finance has been trading within a well-established ascending channel since Oct ’24, reinforcing the presence of a strong and sustained uptrend. The stock has consistently respected higher highs and higher lows, indicating firm bullish sentiment.
It now trades comfortably above its 50-day, 100-day, and 200-day EMAs, confirming long-term trend strength. The MACD is positive at 9.85, with the MACD line already above the signal line, validating bullish momentum.
The RSI stands elevated at 70.57, suggesting strong buying interest, while Relative RSI values of 0.16 (21-day) and 0.06 (55-day) reflect consistent outperformance versus the broader market. An ADX reading of 43.84 underscores a very strong trend, adding conviction to the up-move.
A breakout above ₹300 resistance could open room for a rally toward the ₹330 target, while ₹250 serves as a crucial support to monitor for trend validation.
- RSI: 70.57 (Strong Buying Interest)
- ADX: 43.84 (Very Strong Trend)
- MACD: 9.85 (Positive)
- Resistance: ₹300
- Support: ₹250
Manappuram Finance stock recommendation
Current Stance: Buy, with a 3-month target of ₹300 (~9% upside) and a 12-month target of ₹330 (~20% upside) based on 1.5× our FY27E BVPS estimate of ₹220.
Why buy now?
Gold Loan Strength: AUM grew 19% YoY in FY25, with over 80% disbursals now digital - boosting scalability, margins, and operational efficiency.
Capital Boost: Bain Capital’s ₹4,385 cr infusion via equity and warrants strengthens the balance sheet, supporting future expansion and credit growth.
Shift to Secured Lending: Non-gold portfolio is increasingly weighted toward secured segments like housing and vehicle finance, improving asset quality.
Normalizing Credit Costs: Stress in microfinance is easing, with expected improvement in asset quality and declining provisions ahead.
Portfolio fit
Manappuram Finance offers a unique blend of high-yield, secured lending and diversified credit exposure across gold, MSME, housing, and vehicle finance. Backed by a strong capital position, cost-efficient structure, and digital expansion, it is well-suited for investors seeking exposure to financial inclusion, retail credit growth, and a cyclical recovery in NBFCs.If you found this helpful and want regular stock trade calls, check out my community on StockGro here: https://app.stockgro.club/ui/social/tradeViews/groupFeed/07a7b961-b8ca-42ce-baf3-a9eec781b6ebManappuram Finance: Budget 2025-26 opportunities
- Gold Loan Push: Support for gold monetization can expand demand for organized gold lending.
- MSME & Affordable Credit: Budget boost for MSMEs and low-ticket borrowers aids Manappuram’s diversified book.
- Digital Lending: Investments in digital infrastructure align with Manappuram’s online disbursal and analytics-led underwriting.
- NBFC Liquidity: Policy focus on funding access and regulatory clarity benefits mid-sized NBFCs.
- Tier 2/3 Credit Growth: Rural and infra development to drive credit demand in Manappuram’s core markets.
Final thoughts
Manappuram Finance is evolving – silently and steadily. What was once a pure gold loan play is today a diversified lending business, capturing underserved customer segments with tailored products. Its combination of secure lending, expanding verticals, and rural reach gives it the kind of growth levers that many NBFCs lack.
For investors, Manappuram offers a rare mix of value, cash flow strength, and diversification – all at a time when financial inclusion is gaining policy momentum and credit demand is broadening across the country. If you’re seeking a compounder in the NBFC space with a credible past and scalable future, Manappuram may be worth its weight in gold – and more.
