After removal from the F&O ban list, Manappuram Finance’s share price increased by more than 8%. The stock showed positive patterns, opening at ₹182.05 and peaking at ₹193.60. With a stop loss at ₹174, analysts advise purchasing around ₹185–188 with a target price of ₹197–205.
Manappuram Finance Results:
Following its removal from the (F&O) ban list, Manappuram Finance’s share price saw a significant surge of more than 8%. The share price of Manappuram Finance started the day on the BSE at ₹182.05 per share, reaching an intraday high of ₹193.60 per share.
According to Sachin Gupta, Senior Research Analyst at 5paisa, the stock entered Monday’s session with a gap-up following a steep drop from 209.35 to 168.83 levels the week before. The stock has reversed from the 100-EMA and Middle Bollinger Band supports on the weekly chart, suggesting that traders are interested in purchasing. The stock has also maintained its position above the 200-day EMA on the daily chart, bolstering the positive trend. On the daily chart, however, the momentum indicator, RSI, has a negative crossover at about 49.
“With a stop loss at 174 and an upside target of 197/205, we anticipate a purchase in Manappuram Finance based on the above technical structure,” Gupta continued.
The NSE banned one stock in the F&O category from trading on Friday, February 14. Manappuram Finance was the stock that was prohibited from being traded by F&O.
Following the publication of the company’s dismal Q3FY25 results, which were hurt by challenges within its microfinance division following a quarter-long loan disbursement suspension, Manappuram Finance experienced a 5% dip, falling to ₹183 per share on February 14. In Q3FY25, the company’s consolidated net profit dropped by half to ₹282 crore, while its microfinance division’s bad loans and provisions quadrupled to ₹473 crore.
Concerns over “usurious” interest rates and disproportionate markups on funding charges prompted the Reserve Bank of India to restrict the start of the quarter; it was only removed last month. As a result of this circumstance, microfinance revenue dropped by 5% to ₹665 crore.
Axis Securities stated in its analysis that Manappuram intends to carefully resume expansion in the MFI market as difficulties progressively lessen when the embargo is lifted. These days, secured non-gold loans and gold loans are the main focus. The company’s plan to focus on higher ticket-size gold loans and modify interest rates in the MFI sector may impact profit margins.
But throughout FY26–27E, we anticipate that margins (calc.) will hold up nicely at 13.2% to 13.2%. The firm will continue to see short-term pressure on credit charges as it navigates the MFI problems. However, the brokerage stated that credit costs will decline over the medium term as CE forecasts improve and the portfolio composition gradually shifts towards secured assets.
Manappuram Finance Ltd. has been recommended for purchase by Axis Securities, with a price of ₹220.0. Manappuram Finance Ltd.’s current market price is ₹191.35.
According to the brokerage, we have changed our recommendation from HOLD to purchase based on fair prices and anticipated better, profitable development in the medium run.
