Manappuram Finance Q1 results: Profit surges 76% to Rs 496 crore; stock hits one-year high

Manappuram Finance

Manappuram Finance, the Kerala-based non-banking financial company, has reported a significant surge in profits for the first quarter of the financial year 2023-24 (Q1 FY24). The company’s consolidated net profit rose by nearly 76 percent, reaching Rs 495.89 crore, compared to Rs 282.08 crore in the corresponding period of the previous year. This impressive growth in profit was accompanied by a robust performance in revenue from operations as well.

The financial results announced by Manappuram Finance for Q1 FY24 indicate a net profit of Rs 495.89 crore, reflecting a substantial increase of 75.79 percent compared to the net profit of Rs 282.08 crore recorded in Q1 FY23. This remarkable growth in profit can be attributed to the company’s efficient financial management and strategic business decisions. The surge in profit is a testament to Manappuram Finance’s strong positioning in the market and its ability to capitalize on opportunities.

The company’s revenue from operations also witnessed a remarkable upswing. In the June 2023 quarter, the revenue from operations stood at Rs 2,026.26 crore, marking a robust increase of 34.91 percent from Rs 1,501.98 crore reported in the same period last year. This growth in revenue further solidifies Manappuram Finance’s performance and reflects its ability to generate income across its diverse financial services offerings.

Furthermore, Manappuram Finance has declared an interim dividend of 80 paise per equity share with a face value of Rs 2. The company has set August 23, 2023, as the record date for determining the entitlement of the interim dividend among its shareholders. Dividend or dividend warrants are expected to be paid or dispatched on or before September 8, 2023.

In the stock market, Manappuram Finance’s performance is also making waves. The company’s stock surged by 3.62 percent during the day’s trading session, reaching a fresh 52-week high of Rs 147.50. It eventually settled 2.70 percent higher at Rs 146.20. Notably, the stock’s trading volume was significantly higher than the two-week average, with around 12.64 lakh shares changing hands compared to the average volume of 4.99 lakh shares. The impressive trading activity contributed to the stock’s turnover on the counter, which stood at Rs 18.39 crore, commanding a market capitalization of Rs 12,340.44 crore.

The performance of Manappuram Finance’s stock over the past year has been impressive as well. The stock has gained more than 37 percent, reflecting investors’ confidence in the company’s growth trajectory. On a year-to-date basis, the stock has gained over 22 percent, demonstrating its consistent performance and positive market sentiment.

Analysts also have their eyes on Manappuram Finance’s stock. According to Trendlyne data, the stock has an average target price of Rs 148, indicating a potential upside of 1 percent. However, investors should note that the stock carries a one-year beta of 1.39, indicating a higher level of volatility compared to the market average.

Founded in 1992, Manappuram Finance has grown significantly over the years. The company operates through more than 5,000 branches across 28 states and union territories in India. With assets under management (AUM) amounting to Rs 35,452 crore and a workforce of over 45,000 employees, the company has established a robust presence in the financial services sector.

In the broader market context, Indian equity benchmarks experienced a decline on the day of the announcement, primarily led by the fall in bank, financial, consumer, pharma, auto, and technology stocks. The BSE Sensex, a key benchmark index, fell by 308 points or 0.47 percent, closing at 65,688. The NSE Nifty index, another prominent benchmark, also faced a decline of 89 points or 0.46 percent, settling at 19,543.

As Manappuram Finance continues to deliver strong financial results and maintain a positive trajectory in the market, investors and industry experts alike are keenly observing its journey and its potential contributions to the financial sector’s growth and development.

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