Manappuram Finance shares advanced as much as 13.47 per cent on Monday after the gold loan company announced that the rating of its debentures has been upgraded by a credit rating agency.
At 2.51 pm, shares of Manappuram Finance were trading 7.92 per cent up at Rs 77.70. The scrip opened at Rs 72.90 and has touched a high and low of Rs 81.70 and Rs 72.70, respectively, in trade so far. Benchmark BSE Sensex was trading 123 points up at 27,268.35.
CRISIL has upgraded its rating on long-term bank facility and non-convertible debentures of the company to ‘CRISIL AA-/Stable from ‘CRISIL A+/ Stable’, while reaffirming the rating on short-term debt at ‘CRISIL 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.
Manappuram Finance is promoted by V P Nandakumar, whose family has been in the gold-loan business for more than 60 years.
For the quarter ended March 31, 2016, the company reported a consolidated net profit of Rs 130.70 crore, up 86.62 per cent, against Rs 70.04 crore in the corresponding quarter a year ago.
Manappuram Finance had a consolidated AUM of Rs 11430 crore and networth of Rs 2760 crore as on March 31, 2016, against Rs 9590 crore and Rs 2630 crore, respectively, as on March 31, 2015.
In the past one year, Manappuram Finance shares soared 155.77 per cent to Rs 72 on July 1, 2016 from Rs 28.15 on the same day a year ago whereas the BSE Sensex plunged 3.13 per cent during the same period.