Manappurram Finance's shares glitter like gold

The shares of Manappurram Finance on an annual basis (from June 17 2015 to June 17 2016) have rallied over 114 per cent.The shares on June 17 on the bourses are trading close to their day's high at Rs 60.25. The shares' 52 week high/low stand at Rs 60.50/19.75. 

The major reason for such a surge in the shares prices has been good results posted by the company in Q1FY16. The company has reported a 79 per cent surge in the standalone net profit on (YoY) and a 86 per cent surge in consolidated net profits. Consolidated net profits stand at Rs 131 crore for the fourth quarter ended March 31, 2016 (Q4FY16). The company had registered a profit of Rs 70 crore in the year ago quarter.Net interest income has grown by 45 per cent to Rs 417 crore from Rs 287 crore in the corresponding quarter of previous fiscal.

The Price to earnings ratio which is the good indicator of the valuation of the shares, stands at 0.019 whereas the industry P/E stands at 3080. The P/E is low as compared to industry P/E which means the stock is undervalued and has a high potential for growth. 

Manappurram General Finance and Leasing Limited (MAGFIL) is an India based Non-Banking Finance Company. The Company’s business segments include asset finance, gold loan and other loans, and fee-based activities. The Company provides wide range of services, including gold loans, vehicle finance, insurance, foreign exchange services, distribution of mutual funds and other financial products.