Man Appu Ram
Man Appu Ram
Man Appu Ram
Digvijay D Jadhav
Karan Ralhan
Basheer Salma
Company Overview
Porter’s 5 forces framework
25
increased 25
20
• NPR, EPS rose during FY-21 20
15
(because of increased loans 15
10 10
due to job loss in pandemic).
5 5
0 0
Mar-22 Mar-21 Mar-20 Mar-19 Mar-18 Mar-22 Mar-21 Mar-20 Mar-19 Mar-18
6,000
20
5,000
4,000
15 • Constantly growing revenue and
3,000
advances
10
• Collections took a hit with strict
2,000
CAGR= 12.1%
5
lockdowns in COVID Waves.
1,000 • Company has a healthy Return on
- 0 Equity (ROE) track record of
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
16.6%.
Advances EV/EBIDTA • The company has been
maintaining a healthy ROCE of
35000.00 12
14.85% since last 3 years.
30000.00 10
25000.00
8
20000.00
CAGR= 6
15000.00 12.1%
4
10000.00
5000.00 2
0.00 0
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Peer Comparison
EV / EBIDTA P/E RATIO
16
Manappuran has a 14
12
Industry Average
higher ROE % as 10
8 Bengal & Assam
compared to most of 6
4
Manappuram Finance
Discount
Rate/ Cost of
Book Value Equity 5 year Gov
ROE Risk Free
Per Share Bonds
Rate (RBI)
Unlevered S&P
Excess returns
Beta Global
per share
Aswath
Value of equity Equity Risk Damodaran
Premium (NYU)
Excess Return Model
Valuation Model (Excess Returns Model)
Return On Equity 16.6%
Excess Return Model-
• The value of a firm can be Stable EPS ₹ 20.93
Book Value of Equity per Share ₹ 126.09
written as the sum of capital
Perpetual Growth Rate 6.80%
invested currently in the firm
Risk-Free Rate 6.79%
and the present value of excess
Equity Risk Premium 8.40%
returns that the firm expects to
Consumer Finance Unlevered Beta 0.8
make in the future.
Re-levered Beta 1.87
• Used for finance firms where
Levered Beta 1.87
free cash flow is difficult to Discount Rate/ Cost of Equity 22.51%
estimate Excess Returns ₹ -7.46
P/EBITDA
NBFC sector Share
• RBI EV
growth Value
36,142 10,947 129
Stock Recommendation
1. https://www.moneycontrol.com/stocks/company_info/print_main.php
2. https://www.moneycontrol.com/financials/manappuramfinance/balance-sheetVI/MGF01/1#MGF01
3. https://www.owler.com/company/manappuram
4. https://www.manappuram.com/
5. https://simplehai.axisdirect.in/peercomparison/nse/Manappuram-Finance-Ltd-6083
6. https://ticker.finology.in/company/MANAPPURAM
7. https://www.indiainfoline.com/company/manappuram-finance-ltd/peer-comparison/6083
8. https://m.rbi.org.in/scripts/PublicationsView.aspx?id=20946
Microsoft Excel
Worksheet
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