India's Manappuram Finance rises as CLSA sees it gaining from rival's woes

IIFL Finance

26/06/2024 07:39

** Shares of Manappuram Finance Ltd  MNFL.NS  rise as much
as 3.5% to 199.80 rupees
    ** CLSA maintains "buy" rating, raises PT to 240 rupees from
220 rupees; says non-bank lender's gold loan business has seen
strong momentum since March, when India cenbank barred rival
from disbursing such loans
    ** Reserve Bank of India (RBI) had barred IIFL Finance
 IIFL.NS  from disbursing gold loans citing "material
supervisory concerns"
    ** MNFL benefiting from acquisition of new customers being
"turned away" by competitor, CLSA says, without naming IIFL
    ** Brokerage raises FY25 gold loan growth estimates to
double digits from single digits; ups FY25-27 overall net profit
estimates by 4%-6%
    ** Analysts tracking MNFL rate it "buy" on avg; CLSA's PT
makes it second-highest on street - LSEG data
    ** MNFL up 6.3% since RBI's order against IIFL; latter down
~21%


 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))