Jefferies has maintained a Hold rating on Manappuram Finance (MGFL), raising its target price to ₹190, indicating a potential 5% upside from the current market price of ₹180.41.
Key Takeaways:
- RBI lifted the disbursement ban on MGFL’s MFI subsidiary Asirvad, which accounts for 27% of AUM and contributes approximately ₹20 to MGFL’s valuation.
- Disbursements in the MFI segment are expected to remain muted in the near term due to ongoing stress in the sector.
- The removal of the ban was largely anticipated, which is reflected in the stock’s recent rebound to pre-ban levels.
- While valuations for MGFL appear attractive, near-term earnings drag from the stressed MFI portfolio could weigh on the stock’s performance.
Manappuram’s short-term prospects face challenges, but the lifting of the RBI ban is a significant step toward improving its long-term growth trajectory.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
