Manappuram Finance Limited: History, Latest Updates, Milestones, Subsidiaries and  Share Price

INTRODUCTION

Manappuram Finance Ltd. is a leading NBFC in India, primarily focused on gold loans, providing essential financial services to a diverse clientele. Established in 1949 in the tranquil coastal village of Valapad, Thrissur District, Manappuram Finance Ltd. traces its roots to Mr. V.C. Padmanabhan, who began his journey in pawnbroking and money lending. After the passing of his father in 1986, Shri V.P. Nandakumar took over the reins, leading the company into a phase of significant growth and transformation.

 

Officially incorporated in 1992, Manappuram Finance Ltd. has since expanded its footprint significantly, boasting over 5,073 branches across 28 states and union territories. With assets under management reaching Rs. 302.6 billion and a dedicated workforce of more than 41,000 employees, the company has achieved numerous milestones, solidifying its reputation in the financial landscape of India. 

 

This article delves into the history, latest updates, key milestones, subsidiaries, and Manappuram share price, providing a comprehensive overview of this thriving enterprise.

 

Manappuram Finance Ltd moves in 2024

• For Q1 FY25, the consolidated net profit reached Rs. 556.5 crore, marking an 11.7% increase compared to Rs. 498 crore in the corresponding quarter of FY24. This growth reflects the company’s strong performance and effective strategies over the past year.

• Its consolidated assets under management (AUM) grew by 21% quarter-on-quarter, reaching Rs. 44,932 crore.

• The standalone net profit for the quarter came in at Rs. 441 crore.

• Total consolidated operating income surged by 23% year-on-year to Rs. 2,488 crore.

• As of June 2024, the gold loan portfolio has seen substantial growth, expanding by 14.8% to reach Rs. 23,647 crore, supported by a customer base of 2.6 million active clients. This significant increase highlights the rising demand for gold loans among consumers.

• CEO V.P. Nandakumar emphasized that the nearly 15% rise in gold loan AUM year-on-year has positively impacted the company’s stock performance.

• Manappuram Home Finance’s AUM reached Rs. 1,587 crore.

• The AUM for vehicle and equipment finance saw a 63.4% growth, totaling Rs. 4,541 crore.

• Non-gold business operations now account for 47% of total AUM, with potential to further strengthen the company’s stock value.

• Total borrowings were Rs. 38,463 crore, with a customer base of 6.8 million live accounts.

 

Evolution of the Manappuram Finance Ltd: From Past to Present:

Past:

Manappuram Finance Limited, incorporated in 1992, initially operated as Manappuram General Finance and Leasing Limited. It became one of India’s leading NBFCs, specializing in gold loans. In the early years, the company expanded rapidly by opening branches in key locations like Calicut, Ernakulam, and Guruvayur. By 2002, it diversified into Forex services and insurance broking, establishing a strong foothold in financial services. Significant milestones included launching new branches, acquiring 100% equity in Manappuram Insurance Brokers, and obtaining the Authorized Dealer Category II license from the RBI, allowing it to manage non-trade remittances and currency exchange. By 2012, its assets under management (AUM) crossed Rs. 10,000 crore, which signifies a significant milestone in its progression. The growth in business also began to influence the Manappuram share price, reflecting its expanding operations.

Present: 

Today, Manappuram Finance is a diversified NBFC with a Pan-India presence of over 5,232 branches, serving 5.09 million active customers across 28 states and 4 union territories. The company has broadened its services to encompass microfinance, housing finance, and vehicle finance in addition to its gold loan offerings. Its AUM grew significantly in FY23, with a 17.20% increase due to rapid growth in microfinance (39.70%), housing finance (29.60%), and vehicle finance (49.40%). The company’s gold loan branches now stand at 3,524, and it holds substantial equity in subsidiaries like Asirvad Microfinance and Manappuram Home Finance. This steady growth and diversification have positively impacted the Manappuram share price, as the company continues to establish itself as a broad financial services provider.

 

 

Timeline of Manappuram Finance Ltd:

 

Inside the Manappuram Finance Ltd:  

Manappuram Finance Ltd

Corporate actions: Manappuram Finance Ltd's last dividend date was August 13, 2024, with a current dividend yield of 1.98% and an annual dividend payment of Rs. 3.75. Investors should watch the Manappuram share price to see if there are any potential impacts from these updates.

Main News: 

• Manappuram Finance proudly celebrates its 75th anniversary on June 1, 2024. Over the past seven decades, the company has grown from humble beginnings to become a significant player in India's financial services sector.

 

• On April 1, 2024, Manappuram Finance Ltd launched its innovative ‘Make Life Easy With Doorstep Gold Loan’ campaign, aimed at revolutionizing gold loan accessibility across the nation.

 

• On August 19, 2024, Manappuram Finance received approval for the issuance of secured, non-cumulative, redeemable, listed, and rated non-convertible taxable debentures. These debentures, each valued at Rs. 1 lakh, will collectively raise Rs. 450 crore through a private placement.

Asirvad Micro Finance

Main News: 

Asirvad Micro Finance has secured the necessary approval from SEBI for its initial public offering (IPO), aiming to raise up to Rs.1,500 crore through a new equity share issuance. This milestone was confirmed on October 4, 2023, as the company prepares to bolster its capital base to support future growth?

 

Manappuram Home Finance Limited

Main News: 

Manappuram Home Finance reported a 3.25% decline in net profit, reaching Rs 7.14 crore for the quarter ending March 2024, compared to Rs 7.38 crore in the same period of the previous year, March 2023.

Current Manappuram Finance Ltd Share Price NSE

 

 

Achievements and Milestones:

Manappuram Finance Ltd. has received numerous awards and recognitions in recent years, showcasing its leadership in financial services and its corporate governance excellence. Some notable awards include:

 

 

These accolades reflect the company's significant strides in corporate governance, financial performance, and community development under Nandakumar's leadership.

 

CONCLUSION

In conclusion, Manappuram Finance Ltd. has demonstrated remarkable growth and resilience since its establishment, evolving into a leading player in the non-banking financial sector. With a diverse range of services, including gold loans, microfinance, and housing finance, the company has positioned itself well in the competitive landscape. Recent achievements, such as an 11.7% increase in consolidated net profit and significant growth in assets under management, highlight its robust performance. As investors monitor the manappuram share price, they should consider the company's strategic initiatives and ongoing commitment to innovation, which are likely to shape its future trajectory in the financial services industry.

 

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Frequently Asked Questions:

1. Is the current debt-to-equity ratio affecting the Manappuram share price?

Yes, the debt-to-equity ratio for Manappuram Finance is 321.6%, which is lower than the industry average of 348.7%. This healthier financial structure may positively influence the Manappuram share price.

 

2. Where can I access the most recent information on the Manappuram share price?

Find real-time updates and the latest share price on Enrich Money's stock analysis page here.

 

3. How does the current ratio impact the Manappuram share price?

Manappuram Finance boasts a current ratio of 267.21%, significantly higher than the industry average of 65.32%. Such strong liquidity can instill investor confidence, potentially impacting the Manappuram share price positively.

 

4. What is the revenue growth rate and its effect on Manappuram share price?

Over the last five years, Manappuram Finance has experienced a revenue growth rate of 16.03%, surpassing the industry average of 15.2%. This growth trajectory can attract investors, likely benefiting the Manappuram share price.

 

5. How has the increase in market share affected the Manappuram share price?

Manappuram's market share has risen from 3.39% to 3.8% over the past five years. A growing market share often reflects a company's competitive strength, which may have a positive effect on the Manappuram share price.

 

 

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