Manappuram hits a new high

Manappuram Finance is the top gainer on the BSE; hitting a multi-year new high today at Rs.78.40 and it continues to remain firm at Rs.78 levels, up over 9%.

The market is extremely happy with the rating agency, Crisil upgrading the rating for the company. On Friday, Crisil announced that it had upgraded its rating on the long-term bank facility and non-convertible debentures of Manappuram to ‘AA-/Stable' from ' A+/Stable', while reaffirming the rating on short-term debt at ' A1+'.

The upgrade reflects improvement in business risk profile driven by changed business model, and stable operating environment backed by an established regulatory regime. The rating upgrade also factors in the company's strong earnings profile.

The ratings reflect the strong track record of Manappuram Finance's promoters in financing against gold jewellery, adequate capitalisation and stable funding profile, and strong profitability. These strengths are partially offset by geographical and product concentration in revenue profile and challenges associated with other product segments.