Manappuram Finance gains on Asirvad MFI's strong Q1 show

Manappuram Finance share price gained 5 percent on August 8 after subsidiary Asirvad Microfinance's June quarter numbers beat Street expectations.The microfinance institution (MFI) reported a consolidated net profit of Rs 111 crore in the quarter gone by against a loss of Rs 8.3 crore in the year-ago period. Revenue from operations jumped 77 percent YoY to Rs 637 crore.

Following Asirvad MFI's results, foreign broking firm Morgan Stanley reiterated its "overweight" rating on Manappuram Finance with a target price of Rs 160 a share. Asirvad MFI's profit is 25 percent higher than estimates, said Morgan Stanley. Consequently, there is the possibility of an upside risk for Manappuram's first quarter PAT, which is projected to be Rs 427 crore.