mannapuram finance breakout soon

Manappuram Finance Ltd. is a prominent Indian non-banking financial company (NBFC) specializing in gold loans, microfinance, and other financial services. Here's a comprehensive analysis of the company's current situation:

**Fundamental Analysis:**

- **Financial Performance:**
- **Revenue Growth:** In the fiscal year ending March 31, 2024, Manappuram Finance reported a 32.15% year-over-year increase in revenue, surpassing its three-year compound annual growth rate (CAGR) of 11.73%. citeturn0search1
- **Profitability:** The company maintains a net profit margin of 6.77%, indicating consistent profitability. citeturn0search1
- **Asset Quality:** The gross non-performing assets (GNPA) ratio stood at 1.8% as of December 2024, reflecting a stable asset quality.

- **Operational Segments:**
- **Gold Loans:** This segment remains the primary revenue driver, contributing significantly to the company's income.
- **Microfinance:** The microfinance division has shown robust growth, with an 18% increase in income reported in the first quarter of fiscal year 2025. citeturn0news9

- **Regulatory Developments:**
- **RBI Restrictions:** In October 2024, the Reserve Bank of India (RBI) imposed lending restrictions on Manappuram's subsidiary, Asirvad Micro Finance, due to concerns over "usurious" pricing and excessive markup over funding costs. This decision impacted approximately 27% of the company's consolidated assets. citeturn0news10

**Technical Analysis:**

- **Stock Performance:**
- **Current Price:** As of February 24, 2025, the stock is trading at ₹204.03. citeturn0search5
- **52-Week Range:** The stock has fluctuated between ₹147.00 and ₹384.80 over the past year, indicating significant volatility.

- **Support and Resistance Levels:**
- **Support Level:** The immediate support is around ₹190.00.
- **Resistance Level:** The immediate resistance is near ₹220.00.

**Analyst Ratings:**

- **Consensus Rating:** The average target price for Manappuram Finance is ₹207.40, suggesting a potential upside of approximately 1.65% from the current price. citeturn0search4
- **Brokerage Views:** Morgan Stanley maintains an "Equal-Weight" rating with a target price of ₹170, indicating a potential downside from the current market price. citeturn0search3

**Recent Developments:**

- **Q1 FY2025 Performance:** In the first quarter of fiscal year 2025, Manappuram Finance reported a 12% increase in profits, driven by strong growth in gold-backed loans. citeturn0news9

**Conclusion:**

Manappuram Finance has demonstrated robust growth in its core segments, particularly gold loans and microfinance. However, recent regulatory challenges, including the RBI's restrictions on its microfinance subsidiary, have introduced uncertainties. The stock's volatility and mixed analyst opinions suggest a cautious approach for investors. Monitoring the company's regulatory compliance and financial health will be crucial for assessing its future prospects.

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