Manappuram Finance shares: Morgan Stanley, CLSA, Jefferies - targets by top brokers

Seven out of 10 brokerages that came out with updates on Manappuram Finance Ltd suggested a 'Hold', 'Neutral' or equivalent rating on the stock, even after the gold loan company reported a beat in its Q1 results. Brokerages said the company delivered a strong quarter, led by sustained growth in its gold loan portfolio and an improvement in gold loan yields, which supported margin expansion.

At the same time, analysts said growth in non-gold segments remained subdued as Manappuram Finance continued to prioritise asset quality and portfolio stabilisation in those businesses. The stock is up 43 per cent over the past one year, while the Bloomberg consensus target of Rs 372 implied a 3.4 per cent potential upside from here on.

Nirmal Bang said, "We expect the earnings trajectory to remain constructive, supported by healthy AUM growth, resilient NIMs, disciplined costs, and improving asset quality. We expect ROA/ROE to improve to 3.5 per cent/14.1 per cent in FY27E and 3.8 per cent/15 per cent in FY28E from 2.8 per cent/11 per cent in FY26, with 1QFY27 already showing a meaningful improvement."

It, however, said the improving returns profile is largely reflected in the current valuation and that it saw limited room for further re-rating. "We recommend HOLD with a target of Rs 375," it said.

Morgan Stanley suggested 'Equalweight' with a target price of Rs 360. Investec, Nirmal Institutional Equities, CLSA and 360 ONE Capital suggested 'Hold' on the stock with targets of Rs 400, Rs 375, Rs 350 and Rs 315, respectively. Phillip Capital is neutral on the stock with a target of Rs 360, while MOFSL reiterated its 'Neutral' rating with a target of Rs 390. Jefferies, DAM Capital and Equirus Securities suggested 'Buy' or an equivalent positive stance with targets of Rs 430, Rs 400 and Rs 435, respectively.

MOFSL said Manappuram Finance's consolidated PAT rose 340 per cent year-on-year and was a 26 per cent beat. Net interest income grew 25 per cent year-on-year and beat MOFSL's estimate by 6 per cent. Operating expenses grew 1 per cent year-on-year and were in line with expectations. It also noted that Manappuram Finance had appointed Ashish Singh as the managing director and chief executive officer of the company for a five-year term effective January 2027.

"We raise our FY27/FY28 EPS estimates by 18 per cent/3 per cent to factor in higher NIM and lower credit costs. Reiterate our Neutral rating on the stock with a target of Rs 390 (based on 1.8x FY28E consolidated BVPS)," MOFSL said.

Equirus Securities said the last few quarters had seen a sharp recovery in Manappuram's business momentum and profitability. It broadly maintained estimates and said it would remain watchful of the movement in gold prices. "We remain constructive and Retain LONG with a Sep'27 target of Rs 435 (vs Rs 360 earlier), based on 1.8 times September 2028E BVPS (1.6x earlier)," the brokerage said.