NSE Symbol: MANAPPURAM | BSE Code: 531213
Manappuram Finance Share Price Performance
Manappuram Stock Trends - 2018
In January 2018, the Manappuram Finance share price opened at Rs.123.45. It slightly fluctuated before falling to Rs.110.95 by the end of the month.
The stock was priced at Rs.112.40 in the beginning of February before it dropped to Rs.102.55 within the first week. This was because the company reported a 9% drop in net profit for Q3 of FY 2017-18. However, the share price recovered as the company announced a dividend of 25% and stood at Rs.107.95 at the end of the month.
In March 2018, the stock price opened at Rs.107.80 and remained constant. The stock price was Rs.109.05 when the month ended.
April 2018 was a significant month as the price of the stock rose to Rs.122.25.
However, the Manappuram share price tragically fell to Rs.107.70 by the end of May.
June was even more unfortunate as the stock price reached Rs.98.50 by the end of the month.
July showed slight improvement as the stock rose to Rs.105.40 on the last day of the month.
Although the stock rose to Rs.112.95 in the beginning of August, it soon dropped and hovered around Rs.100 for the rest of the month.
September witnessed a drastic yet steady drop in the share price which reached a record-breaking low of Rs.72.40 by the end of the month.
Manappuram Finance Stock Trends - 2016 and 2017
In January 2016, the Manappuram share price opened for trading at Rs.29.45. Over the next two months, the share price hovered around Rs.30 and ended the quarter at Rs.30.40 on the last day of March 2016.
In April 2016, the price of the stock opened at Rs.35.15, which increased considerably to end the month at Rs.40.30. This upward trend continued in May and June, during which, the stock price steadily increased to end the quarter at Rs.68.95.
On 1st July 2016, the stock price was at Rs.69.70. After slight fluctuations, the share price stood at Rs.82.00 when July ended. The stock continued to rise over the next two months and went above Rs.95 by the end of the September 2016 quarter.
The stock went above the Rs.100 mark in October. However, November 2016 was an unfortunate month when the Manappuram Finance share price fell to Rs.70 toward the end of the month. In December, the shares hit an unfortunate low of Rs.58.80 but recovered slightly to end the year at Rs.67.30.
January 2017 started off at Rs.68.25 and grew to Rs.80.65 by the end of the month. February saw significant gains and the stock shot up to Rs.103.45. The stock slightly fell in March and closed the quarter at Rs.98.15 with not many gains.
The next quarter, which opened on 3rd April for trading, didn't witness a lot of change. The stock prices hovered around Rs.95 throughout April, declined to Rs.85.25 in May and again came up to Rs.97.95 by the end of June.
In July 2017, the stock price increased to Rs.106.75 but sharply declined to Rs.84.80 in August. The stock picked up again and went above Rs.100 in September but closed the quarter at Rs.96.65.
October was comparatively a stable month in which the share price remained hovering just below Rs.100. It went slightly above the Rs.100 mark in November. December 2017 was a month of heavy fluctuation - the Manappuram share price opened at Rs.106.00, declined to Rs.99.80 within a fortnight and then surprisingly recovered by the end of the month by shooting up to Rs.121.30.
Manappuram Finance Company Information and Brief History
Manappuram Finance Ltd., a non-banking financial company, was incorporated in 1992. It is based out of Thrissur in the Indian state of Kerala. The company was established by late V.C. Padmanabhan in Thrissur district of Kerala. It began its operations at Valapad mainly focusing on money lending. The company was initially called Manappuram General Finance and Leasing Ltd. In 2011, the company was renamed as Manappuram Finance Ltd. It acquired Milestone Home Finance in 2014. The company offers various types of loans, mostly on gold, and also for commercial vehicles. It also finances several Small and Medium Enterprises (SMEs). With more than 3000 branches and over 15000 employees, the NBFC has its presence in 25 states in the country. Recent reports state that Manappuram Finance has a market capitalization of about Rs.9,000 crore. The company mainly operates in the finance sector.
Wealth and Recent Performance
The key products and sources of revenue of Manappuram Finance include interest generated from loans. This contributed Rs.2980.77 cr to the company's sales value while processing charges added another Rs.17.27 cr to the sales value in March 2018. Moreover, other operating revenue amounted to another Rs.8.98 cr being added to the sales value.
In the quarter ending in March 2018, the company reported a consolidated sales of Rs.889.80 cr, which had increased by 1.95% on the previous quarter's value of Rs.872.78 cr. However, it dropped by -1% when compared to the same period in the previous year when the sales value was Rs.898.80 cr.
Manappuram Finance has reported a net profit after tax (PAT) of Rs.183.18 cr in June 2018. The net profit dropped by 9.2% at Rs.182.17 cr in Q4 of FY 2017-18. Manappuram Finance had reported a net profit of Rs.200.58 cr in the same quarter in the previous year.
The total income during the quarter also dropped to Rs.901.19 cr compared to Rs.905.50 cr in the same period in 2016-17.
The net profit also dropped to Rs.670.89 cr from Rs.755.85 cr in March 2017. The income for the year dropped to Rs.3476.56 cr from Rs.3408.91 cr.
Manappuram Board of Directors announced an interim dividend of 50paise per equity share in 2017-18.
Is Investing in Manappuram Finance Ltd. a Good Idea?
In spite of a drop in the net profit, the Manappuram Finance share price was on an upward trajectory in the last three years. The net profit reported in the latest quarter suggests that the price is expected to move upwards. The net profit of the company, on a y-o-y basis, has declined to Rs.670.89 cr from Rs.755.85 cr in the FY 2016- 2017. The management team of Manappuram Finance is capable of implementing strategies. They will take important decisions at the required time. Therefore, although there is a fall in stock price recently, the stock exhibited a steady growth by nearly 100 points over the last three years. It could be a viable investment option for the long run. However, the investment decision should be made only after a thorough research and study.