Manappuram Finance share price hits fresh 52-week high; ICICI Securities sees further upside
Manappuram Finance share price rose over 4 per cent to hit its fresh 52-week high of ₹155.65 in intraday trade on BSE. The stock opened at ₹149.05 against the previous close of ₹148.90 and rose 4.5 per cent to hit its fresh 52-week high. It traded 2.62 per cent higher at ₹152.80 around 1:30 pm and looked set to extend its winning run into the fourth consecutive session.
The stock has been gaining since August 28 after the company informed stock exchanges that the Kerala High Court had quashed the Enforcement Directorate's case (ED) against its Managing Director V P Nandakumar. Besides, experts are positive about the stock, thanks to its attractive valuations and wide franchise. Brokerage firm ICICI Securities has a buy call on the stock with a target price of ₹172, implying a 15.5 per cent upside potential from the stock's August 30 close of ₹148.90 on BSE.
"Yield stabilisation in gold loans and turnaround in the MFI (microfinance institutions) business are noteworthy developments in Manappuram Finance. The company has guided for 10-12 per cent gold AUM (assets under management) growth with 21-22 per cent yields while its growth guidance for the MFI segment is more than 30 per cent for FY24," ICICI Securities pointed out. "FY23 annual report mentions about competitive environment in the gold loan business along with the strong growth prospects on the back of an increase in organised market share.
Additionally, the company mentioned about steady outlook in gold loan yields ahead along with expectations of expansion in the customer base," ICICI Securities said. "The MFI business has completed a turnaround in terms of asset quality while the growth outlook is strong at more than 30 per cent YoY. While the current low
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