Stock Performance: Manappuram Finance's stock displayed notable movement, rising by 3.62% to achieve a new 52-week high of Rs 147.50. The stock eventually settled 2.70% higher at Rs 146.20. Notably, the trading volume was significantly higher than the two-week average, with around 12.64 lakh shares changing hands today, compared to the average volume of 4.99 lakh shares. The turnover on the counter amounted to Rs 18.39 crore, contributing to a substantial market capitalization of Rs 12,340.44 crore.
Financial Performance: Manappuram Finance reported impressive financial results for the June quarter of the financial year 2023-24 (Q1 FY24):
- The company achieved a remarkable 76% increase in its consolidated net profit compared to the same quarter last year. The net profit for Q1 FY24 reached Rs 495.89 crore, up by 75.79% from Rs 282.08 crore in the year-ago period.
- Revenue from operations in the June 2023 quarter amounted to Rs 2,026.26 crore, marking a significant 34.91% rise from Rs 1,501.98 crore in the corresponding period last year.
Interim Dividend: Additionally, Manappuram Finance announced an interim dividend of 80 paise per equity share of face value Rs 2. The company fixed August 23, 2023, as the record date to determine shareholders' entitlement to the interim dividend. The dividend or dividend warrants are set to be paid or dispatched on or before September 8, 2023.
Stock Movement and Technical Analysis: The stock continued to demonstrate strong performance, achieving a fresh 52-week high of Rs 147.50 and settling at Rs 146.20. The stock's technical setup is noteworthy:
- It is trading above various moving averages, including the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs).
- The counter's 14-day relative strength index (RSI) is at 68.28, indicating a strong momentum. An RSI above 70 suggests overbought conditions, while below 30 signifies oversold conditions.
Valuation and Market Sentiment: The company's stock has a price-to-equity (P/E) ratio of 9.51, along with a price-to-book (P/B) value of 1.34. The stock's average target price is Rs 148, suggesting a potential upside of 1% based on Trendlyne data. However, it's essential to note that the stock exhibits high volatility, with a one-year beta of 1.39.
Company Overview: Manappuram Finance, a non-banking financial company (NBFC) established in 1992, operates across 28 states/UTs in India. It boasts a vast network of over 5,000 branches (including branches of subsidiary companies). The company manages assets worth Rs 35,452 crore and employs a workforce of over 45,000, as stated on its website.
Market Movement: In the broader context of the Indian equity market, the 30-share BSE Sensex faced a decline of 308 points or 0.47%, closing at 65,688. Similarly, the broader NSE Nifty index dropped by 89 points or 0.46% to settle at 19,543. The decline was primarily attributed to the underperformance of bank, financial, consumer, pharma, auto, and technology stocks.
This analysis provides insights into the recent developments and performance of Manappuram Finance, including its stock movement, financial results, dividend declaration, technical analysis, valuation, and broader market context. Please note that investment decisions should be based on comprehensive research and consideration of various factors.