Stock exchange market is falling. Red arrow graph is showing a fall on a black trading board. Selective focus. Horizontal composition with copy space.

| Photo Credit:

MicroStockHub

Manappuram Finance shares erased their early gains despite a 41 per cent year-on-year (y-o-y) jump in first-quarter standalone net profit to ₹552 crore.The stock opened 2.7 per cent higher at ₹369.95 on the NSE before declining to ₹353.35 at the time of writing.The stock movement came even as the company reported higher Q1 profit and its board approved raising funds, including through the issuance of listed Non-Convertible Debentures/Bonds and Commercial Papers, as part of the proposed enhancement of the company’s borrowing limits to ₹1 lakh crore.Jefferies said Manappuram’s Q1 profit after tax (PAT) was 15 per cent above its estimate, led by better net interest income and lower provisions.Jefferies said healthy customer additions and branch expansions should drive 19 per cent growth in consolidated AUM in FY27.The brokerage said net interest margins improved from Q4 lows and should stabilise, while credit costs should moderate in FY27. Jefferies raised its FY27-28 estimates for earnings per share by 8-13 per cent and expects sharp profit growth from a low base and an improvement in return on equity over FY26-28.Jefferies retained its buy call on Manappuram and raised its target price to ₹430.Meanwhile, CLSA retained its hold rating with a target price of ₹350. It said Q1 standalone PAT beat its estimate by 3 per cent, driven by in-line net interest income and lower operating expenses and credit costs.CLSA said the quarter marked a trend reversal from the previous three to four quarters, when growth came at the cost of margins. In Q1FY27, Manappuram’s gold loan book grew 12 per cent q-o-q while loan yields improved 60 basis points to 17.7 per cent.The brokerage said gold loan growth was driven roughly equally by tonnage and higher loan-to-value (LTV). Given an LTV of 66 per cent, CLSA does not see much further scope for an increase, and said gold loan growth hereon will be largely tonnage-driven as gold prices have been flattish.In the microfinance business, loan growth resumed, but profitability remained low. In vehicle finance, the book continued to run down while the GNPL ratio remained elevated.More Like ThisQ1 Results Today Live: Tata Motors, Apollo Hospitals, HAL, Grasim GMR Airports, Lenskart, Abbott, VA Tech, IRCON, AIA, IRCTC, Sun TV, EID Parry to announce Q1 results, NBCC, Siemens, RVNL, Kalpataru, MRF, Zydus Lifesciences, KPI Green, Manappuram Finance in focus, TD Power Systems, Finolex shares hit 52-week highPublished on August 12, 2026