Manappuram Finance shares are under close watch after a wave of brokerage commentary followed the announcement of Bain Capital’s ₹4,385 crore investment. The deal will give Bain Capital an 18% stake in the company, with the potential to rise to 41.7% post a mandatory open offer at ₹236 per share. The company’s leadership is also set for a change, with plans to fast-track growth across business segments.
CLSA maintained an Outperform rating and raised its target price to ₹270. The brokerage said that with Bain Capital joining forces with existing promoters, the new structure and upcoming CEO could fast-track the gold loan segment, scale up microfinance, housing, and vehicle lending, and enhance tech capabilities. CLSA sees the potential for a healthy re-rating as the new management takes charge.
Jefferies maintained a Hold rating and raised its target price to ₹235, calling the Bain Capital investment and joint control a positive move. However, Jefferies believes the share price may have already factored in part of the optimism. It highlighted that execution challenges persist in the gold loan business and in strengthening the non-gold portfolio. The firm wants more clarity on the incoming management team and its execution strategy before turning more bullish.
Morgan Stanley maintained an Equal Weight rating with a target price of ₹180. While acknowledging the ₹43.85 billion deal and potential open offer, the brokerage believes the stock may hover around the open offer price of ₹236, adjusting for time value and deal execution factors. Morgan Stanley also noted that existing promoters will retain a 28.9% stake and are not selling in the current transaction.
DAM Capital retained a Buy rating and raised its target price to ₹255. It believes the Bain Capital partnership will address previous investor concerns and improve execution confidence. DAM Capital said the stock’s current valuation at 1.05x FY27e book is still attractive and expects a re-rating to 1.25x, driving the revised price target.
Disclaimer: This article is for informational purposes only and is not a recommendation to buy or sell any stock. Please consult a certified financial advisor before making investment decisions.
