Manappuram Finance share price tanks 10% after Q3 results miss estimates: Do you own?

Stock Market Today: Manappuram Finance share price declined more than 10% in the morning trade on Friday, a day after the company declared its Q3 results 2025. 

Manappuram Finance share price opened at ₹187.10 on the BSE on Friday, more than 3% lower than the previous closing price of ₹194.25. The stock thereafter dipped to the day's low of ₹169.10, translating into a downside of more than 10%.

Manappuram Finance Q3 results

In Q3FY25, Manappuram Finance reported a consolidated net profit of ₹282.06 crore, down by more than half year-over-year (YoY) from ₹572.87 crore in the same period the year earlier.

The company's net interest income (NII) experienced a YoY growth of 13.7 per cent, rising to ₹2,516.27 crore from ₹2214.02 crore in Q3 FY24. The impact on profit can be attributed to the microfinance arm's problematic loans and provisioning which increased fourfold to ₹473 crore.

Manappuram Finance post Q3 analysts' views

Jefferies Indian Pvt Ltd post results said that Manappuram Finance's 3QFY25 net profit fell 52% YoY to ₹282 crore below their estimates of close to ₹480 crore due to softer NII and higher provision. 

Assets Under Management (AUM) growth and NIMs missed estimates, falling sequentially as credit cost jumped owing to stress in the MFI (Microfinance Institution) book. Manappuram Finance should gain from higher gold prices, though its growth has lagged peers, said Jefferies. It expects elevated stress in MFI loans to drag earnings near term. At 1 time FY26 estimated book value, valuations seem reasonable as per Jefferies, but the easing of stress in the MFI portfolio will likely be key to re-rating. Jefferies has a ‘Hold’ rating on the stock.

Motilal Oswal Financial Services (MOFSL) highlighted that Gold AUM was largely flat sequentially and grew 18% YoY to around ₹24,500 crore. Gold tonnage declined 4% sequentially to 57.3 tons. Gold loan customer base declined to 2.6 million (from the previous quarter's 2.66 million). Management, however, has shared that gold loan growth in 3QFY25 was sluggish because of festive seasonality. Management guided for gold loan growth of 15-20%. The decline in gold tonnage was because of higher gold prices.

MOFSL has cut FY25/FY26/FY27 net profit estimates by 15%/5%/3%, respectively to factor in lower loan growth and higher credit costs. Over FY24-27, it estimates a CAGR (compounded annual growth rate) of 15%,13% in gold, and consolidated AUM, respectively and ~10% in consolidated net profit. MOFSL has a ‘Neutral’ rating on the stock.

Manappuram Finance dividend details

Manappuram Finance declared an interim dividend of ₹1 per equity share of a face value of ₹2. It fixed February 21, 2025, as the record date to ascertain the entitlement of interim dividend among the shareholders. The dividend shall be paid on or before March 14, 2025.

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