Manappuram General Finance
Target Price: Rs160
Strong operating performance
· MAGFIL reported robust numbers on expected lines for Q2FY11 with NII at Rs1.8bn and PAT at Rs602mn, up 26% and 30.4% qoq driven by 47% qoq growth in AUMs
· Net NPAs (Gold) declined to 0.11% from 0.17% despite sharp growth in AUMs
· We remain wary of the strong growth in AUMs of MAGFIL. Successful execution to QIP (Rs10bn) and ability to contain NPAs key to justify the recent run up in the stock price
· Valuations at 2.4x FY12E ABV still attractive with RoEs of 25% (building in the QIP) . We downgrade the stock to HOLD with price target of Rs160--
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to email@example.com
To unsubscribe from this group, send email to
firstname.lastname@example.org For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en