InvestorQ : Is Mannapuram a stock worth buying after the recent quarterly results for Mar-20?
diksha shah made post

Is Mannapuram a stock worth buying after the recent quarterly results for Mar-20?

Answer
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Khushi Patel answered.
4 months ago


In the midst of the pandemic, Mannapuram managed to report stellar growth performance. Solid rally in gold prices has helped them along the way. Mannapuram reported a 44% spike in net profits at Rs.398 crore for the Mar-20 quarter. Total revenues were also up by 39% at Rs.1618 crore in the March quarter. Generally, the gold lending business has low levels of risk, especially at a time when gold prices are buoyant. Because of the gold pledge, most gold loan companies tend to enjoy much lower levels of NPAs compared to its other NBFC counterparts. With the lockdowns being eased and most households and rural people desperate for liquidity, gold loans could emerge as the natural choice for people for instant liquidity. That could be the big positive for companies like Mannapuram in the coming quarters and that could keep the stock in the radar.