The shares of this small-cap stock closed 6.2 percent up to Rs 147 on Monday after the company announced strong Q2 results and Interim dividend.
According to Mannapuram Finance Limited company’s net revenue of the company rose 27 percent year on year from Rs 1607.82 crores in Q2FY23 to Rs 2043.77 crores in Q2FY24. On a quarter-on-quarter basis, their revenue rose 5.5 percent from Rs 1936.28 crore in Q1FY24 to current levels.
Also, the net profit rose 23.7 percent year on year from Rs 409.49 crores Q2FY23 to Rs 506.65 crores Q2FY24, On a sequential basis quarter on quarter their net profit rose by 1.6 percent from Rs 498.49 crores Q1FY24 to current levels.
Further, the company declared Rs 0.85 per share as an interim dividend which is 42.5 percent of its face value of Rs 2 for the financial year 2023-24. November 24, 2023, is the Record Date for the aforesaid interim dividend. Interim dividend shall be paid to the eligible shareholders on or before December 12, 2023.
On this news, the share rallied and reached an intraday high of Rs 147 in today’s session. It has risen by 31.46 percent in the last six months and 21.32 percent on a year-to-date basis.
Mannapuram Finance Limited is a small-cap company with a Market capitalization of Rs 11,901 crores. It also has a return on equity (ROE) of 16.6 percent and a return on capital employed (ROCE) of 11.07 percent.
Also, the company’s price-to-earnings ratio is 7 which is lower than its average industry Price to earnings. The company has a good current ratio of 3.17 to meet its short-term obligations.
The company’s promoters own 35.20 percent of Coal India; foreign institutional investors own 27.08 percent; the public owns 25.48 percent; and retail investors own the remaining portion.
Manappuram Finance Ltd. is one of India’s leading gold loan NBFCs. The firm was involved in pawn broking and money lending carried out on a modest scale. It has more than 5000 branches across 28 states/UTs with assets under management (AUM) of Rs. 354.52 billion and a workforce of more than 45,000.
Written by Sriram KV
