Morgan Stanley has raised its target price on Manappuram Finance to ₹220 from ₹180 while maintaining an ‘Equal-weight’ rating. The upward revision reflects the market’s positive response to Bain Capital’s proposed acquisition of a significant stake in the NBFC.
The brokerage, however, remains cautious and notes that the full impact of the Bain Capital deal—including its strategic implications and execution—will only become clear over time. Given this, Morgan Stanley has reassessed its valuation methodology with a simplified interim approach that it believes most investors are likely to adopt in the absence of detailed strategic commentary from the new joint promoters.
For now, Morgan Stanley has retained its FY25-27 EPS estimates, awaiting greater clarity on management changes, strategic direction, and execution roadmap in the coming quarters.
