Manappuram Buy With Target of 380If Manappuram Closes Above 230 Level in Monthly Candle, Possible to Touch 380 in Long Term
MANAPPURAM
Manappuram Finance Share Price Crash: Causes, AnalysisMANAPPURAM
On October 18th, 2024, the stock price of Manappuram Finance Ltd witnessed a sharp decline, raising concerns among investors. The company, known for its gold loan services, microfinance, and other financial offerings, experienced a drop in its stock value by nearly 33% from its all-time high achieved just a few months earlier in July 2024. This blog will provide an in-depth analysis of the reasons behind the crash, key financial metrics, and a perspective on whether this presents a potential buying opportunity.
What Happened?
The recent dip in Manappuram’s stock price can be attributed to regulatory actions affecting its subsidiary, Asirvad Micro Finance. The Reserve Bank of India (RBI) instructed Asirvad to halt new loan disbursements due to non-compliance with certain regulations. Since Asirvad contributes significantly to the overall Asset Under Management (AUM) of Manappuram (approximately 27% as of Q3 FY23), this restriction raised red flags about Manappuram's future earnings potential. The market reacted negatively, pushing the share price down amid concerns over the company’s short-term growth prospects.
Key Financials: A Quick Overview of Manappuram Finance
Manappuram Finance Ltd is a non-banking finance company (NBFC) with a significant presence in gold loans, contributing 58% to its total AUM as of Q3 FY23. Over the years, the company has expanded its services to include microfinance, home loans, and commercial vehicle financing. The company’s gold loan business is stable, while the rapid growth in microfinance and other segments has been a key driver of its diversification strategy.
A Brief History of Manappuram’s Growth
Manappuram Finance has had its ups and downs over the years. The company saw a period of rapid growth between FY08 and FY12, driven by the rising price of gold. During this period, its branch network expanded by over six times, and its AUM grew by more than 90% CAGR. However, regulatory changes in 2012 affected its gold loan business, as the RBI reduced the loan-to-value ratio for NBFCs.
Since then, the company has focused on diversifying its portfolio to include other lending services. Its acquisition of Asirvad in 2015 was a strategic move to enter the microfinance market, which has since become a major contributor to its overall AUM.
Impact of Asirvad Microfinance
Asirvad Microfinance, a key subsidiary of Manappuram, plays a crucial role in its growth strategy. As of Q3 FY23, Asirvad’s AUM stands at ₹8,654 crore, approximately 27% of the company’s total estimated AUM of ₹32,093 crore. The RBI's recent regulatory restrictions on Asirvad are likely to have a short-term impact on the company’s ability to disburse new loans, thereby dampening earnings in the coming quarters. However, if the issues are resolved, it could provide an upside to the stock as the market reacts positively to the lifting of restrictions.
Technical View: Opportunity Amidst the Fall?
From a technical standpoint, Manappuram Finance’s stock price has dropped by over 33% from its all-time high, reached in July 2024. The current price of ₹153 presents an interesting opportunity for investors who believe in the company's long-term growth potential. The stock is trading close to its 52-week low, making it an attractive value buy if regulatory risks are resolved favorably.
Fundamental View: Is Manappuram Undervalued?
Looking at the fundamentals, Manappuram appears undervalued based on its current P/E ratio of 5.77 and the fact that it is trading near its book value. The company boasts a strong return on equity (ROE) of 20.6%, zero pledged shares, and a healthy capital adequacy ratio of 31%. These indicators suggest that despite short-term regulatory hurdles, the company’s long-term fundamentals remain strong.
Should You Buy Manappuram Finance Stock Now?
While the drop in share price may seem alarming, it’s important to weigh both the risks and the potential rewards. Here’s a quick summary:
Positives
Strong fundamentals with low P/E, high ROE, and a diversified lending portfolio.
Zero pledged shares and decent dividend yield.
The regulatory issue with Asirvad could be temporary, and if resolved, it may lead to a rebound in share price.
Risks
Uncertainty surrounding the resolution of Asirvad’s regulatory challenges.
Potential short-term earnings impact due to halted loan disbursements.
Market sentiment may remain negative until clarity emerges on regulatory compliance.
Disclaimer: We are not SEBI-registered advisors. The information provided is for educational purposes only, and readers should take care when using it for any investment decisions.
Malappuram Finance Ltd.*Manappuram Finance Ltd.*
Rising C&H Formation on Yearly Basis.
RB Formation on Monthly Basis.
Strong Vol Consolidation & Continued Traction.
%age Neeeed to Cross C&H Priceline
7% for Lower priceline
15% for Upper priceline
RSI: 1H>D>W>M
EMAs: Widening Gaps amongst 20/ 50/ 100/ 200 on Monthly Basis.
With Gold Prices on Rise, Increasing consumer base and financials, company is nicely places to grow.
*Trail SL with Upside*
*Book Profit as per Risk Appetite*
*Do your own research as well. This is an Opinion*
*_Happy Investing_*🤓
Manappuram Finance: Possible 10-15% in 30-40 days..Manappuram Finance: Possible 10-15% in 30-40 days..
Manappuram was in resting phase from May to June now the movement has started.. Expecting to give 10-15% soon
Bullish trade idea in Manappuram10-05
The candle made today is a strong white marubozu.
Support zone made between 158 and 165.
Trend is bullish.
Can buy for Short Term targets of 200+
#Educational purpose only
Buy Manappuram Above 126 TGT 139/154 avg@ 110 SL below 105The Stock is making an inverse head and shoulder and is on the verge of the breakout and also with all the exponential moving averages crossing over the upward direction for the above mentioned targets and given Stop Loss.
MANAPPURAMwe are looking MANAPPURAM bullish move.
Disclaimer:
Kind regards to all friends and members ,
Stock market investment is subject to 100% market risks. Our company is not a SEBI registered company. Please consult your financial advisor before investing. This is for learning and training purposes only. Market Traps administrators are not responsible for any financial gains or losses resulting from your decisions. You acknowledge that stock market investments are highly risky and that you understand the market risks involved. Hence any legal action is void.
Long Manappuram after a huge downtrend from 200 levelsTime to go long at 90 levels
First target :104-105
Second Target: 127
Stop loss close below 86
Swing Buy Opportunity in Manappuram Refer the chart for Entry,Target and SL.
NOTE: This trade is only for Equity Swing buy and not to be considered for options trading.
Please do follow Position Sizing and Risk Reward Ratio while planning any trades.
Note: This information is for education purpose only and please do your own research and consult your financial advisor prior to taking any action.
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MANAPPURAM HARD CRUSH WHICH CAN DROP FURTHER DOWNSIDE.
Bearish breakout on the trend line after a hard crush in prices.
Expecting more potential downside based on the price action in order to revisit back on the support formed on the bottom.
MANAPPURAMNSE:MANAPPURAM
Note :
1.One Can Go long with a Strict SL below the Trendline or Swing Low of Daily Candle.
2. Close, should be good and Clean.
3. R:R ratio should be 1 :2 minimum
4. Plan as per your RISK appetite
Disclaimer : You are responsible for your Profits and loss, Shared for Educational purpose!
MANAPPURAM FINANCE LTD - Crossover Trade📊 Script: MANAPPURAM (MANAPPURAM FINANCE LIMITED)
📊 Nifty50 Stock: NO
📊 Sectoral Index: NIFTY 500 / NIFTY MID CAP / NIFTY FINANCIAL SERVICES
📊 Sector: Financial Services
📊 Industry: Non Banking Financial Company (NBFC)
Key highlights: 💡⚡
📈 Script is trading at upper band of Bollinger Bands (BB) and giving breakout of it.
📈 MACD is giving crossover.
📈 Double Moving Averages also giving crossover.
📈 Volume is increasing along with price which is volume breakout.
📈 Current RSI is around 70.
📈 One can go for Swing Trade.
⏱️ C.M.P 📑💰- 116.65
🟢 Target 🎯🏆 - 138
⚠️ Stoploss ☠️🚫 - 106
⚠️ Important: Always maintain your Risk & Reward Ratio.
⚠️ Purely technical based pick.
✅Like and follow to never miss a new idea!✅
Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes.
Eat🍜 Sleep😴 TradingView📈 Repeat🔁
Happy learning with trading. Cheers!🥂
UPDATE ON MANAPPURAM!!previous analysis is in the link section.
just here for a reupload of my analysis, and a update on it, that the waves which i had drawn are going perfectly.
today as on 12th of October, manappuram have given a breakout, and went above 5%.
great stock to buy, good with fundamentals, business model, and sales are surely to increase.
good movement is gonna come and one can earn about 94%.
ManappuramI bought Manappuram
Manual trend is up
Candles are above 100 EMA
RSI is above 50
Sl below 85 with open targets
MANAPPURAM levels, and waves!!"when a stock falls in such a fast movement, it rises based on supporting its fall".
the stock is in the range of 0.618 of FIBONNACI
good time to enter to take the advantage of 3rd wave.
stock will rise from Monday onwards.
targets are mentioned.
purple line shows the actual value the stock should be trading at. so the stock is available at a lot discount. one can go on putting more money on every time, when it falls during its rising.
MANAPPURAM at a discount!!!this waves are drawn based on the stock which is at major discount and with a good fundamentals, so the waves will follow there impulsive moves based on its targets reached previously.
wave 1- a impulsve move to correct itself to reach the first level of its target
wave 3 - to reach the second target
wave 5- to reach the major trend line, to make the stock exactly priced.
wave 2&4 are the corrective waves, which makes the stock to rest running a long journey.
NOTE- wave 3 should not be shortest waves among(1,3&5)- Princles of Wave Theory
MANA#MANA
- Between a bat and a crab 🦇🦀
- Monthly Demand
#This is my technical opinion and not a recommendation to buy or sell
manappuram finance: breakout soon Manappuram Finance is forming ascending symmetrical triangle on daily charts. volume is building. wait for the price to cross above the breakout zone.
Manappuram for buyManappuram after breaking the upper trendline, took support on the trendline and looking good for an upmove. Its looking good both fundamentally and technically. Let's see where it headed.
DecentralandMANA/USDT waiting for mana to make this move for one more Fake Breakout on this Zone and To SELL IT
Manappuram Finance - Long Term Investment Opportunity Manappuram Finance, At multiyear support level. Long Term Investment Opportunity.
#MANA/USDT 1HOUR UPDATE BY CRYPTOSANDERS Hello, community members welcome you all to this MANA/USDT 1hr chart analysis.
mana/usdt1hour analysis and cup and handle complete and buy green zone.
leverage:-5x to 10x leverage
entry:-$1.11,$1.16
target:-60% to 80%
stoploss:-0.9910
Remember: This is not a piece of financial advice. All investment made by me is at my own risk and I am held responsible for my own profit and losses. So, do your own research before investing in this trade...
happy trading...
thank you...
Manappuram is a buy around 208 with sl 190 for trgt 245Manappuram is a buy around 208 with sl 190 for trgt 245
