External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<div><ul><li>Gold loan demand muted while MFI continues to disappoint - Over the last three quarters, MGFL traded off margin and spreads for Gold loan growth.</li></ul><div><ul><li>Gold and MFI AUM fell sequentially; credit costs elevated in MFI - Gold AUM fell ~1% QoQ to INR202b and Gold tonnage declined by 2% to 68t.</li></ul><div><ul><li>Compression in spreads and margin driven by higher ticket sizes and aggressive competition - NII fell 2% QoQ, driven by sequential moderation of ~150bp in Gold loan yields to 18.8%.</li></ul></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Gold loan demand muted while MFI continues to disappoint - Over the last three quarters, MGFL traded off margin and spreads for Gold loan growth.Gold and MFI AUM fell sequentially; credit costs elevated in MFI - Gold AUM fell ~1% QoQ to INR202b and Gold tonnage declined by 2% to 68t.Compression in spreads and margin driven by higher ticket sizes and aggressive competition - NII fell 2% QoQ, driven by sequential moderation of ~150bp in Gold loan yields to 18.8%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

4QFY22 Results Update - Manappuram Finance

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

<div><div><div><div><ul><li>Yields remain under pressure; likely to recover: Net yield in 4QFY22 declined to 18.8% from 20.3% in 3QFY22 and 25.3% in 2QFY22 amid high competition from other lenders.</li></ul><div><div><div><div><ul><li>Gold loan AUM down QoQ; uptick in NPA not worrisome: Total gold loans AUM declined 1.4% QoQ while gold holdings/collateral declined by 2.9% QoQ.</li></ul><div><div><div><div><ul><li>MFI growth revive in FY23: In 4QFY22, the company scaled back growth in the MFI business as it prioritized improvement in asset quality and collections.</li></ul></div></div></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Yields remain under pressure; likely to recover: Net yield in 4QFY22 declined to 18.8% from 20.3% in 3QFY22 and 25.3% in 2QFY22 amid high competition from other lenders.Gold loan AUM down QoQ; uptick in NPA not worrisome: Total gold loans AUM declined 1.4% QoQ while gold holdings/collateral declined by 2.9% QoQ.MFI growth revive in FY23: In 4QFY22, the company scaled back growth in the MFI business as it prioritized improvement in asset quality and collections.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Manappuram Finance - Customer Acquisition Weak Amid High Competition, Weak Demand

<ul><li>In the last two quarters, MGFL traded off margin/spreads for Gold loan growth.</li><li>This new business strategy helped it cover a lot of lost ground in terms of market share, with a cumulative Gold loan growth of ~24% over 2Q and 3QFY22. This new strategy also meant: elevated advertising/promotion costs and incentives for employees translating in higher operating expenses, and compression in spreads to ~11.5% v/s 14.5-15% under its earlier high yielding business model.</li><li>.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

In the last two quarters, MGFL traded off margin/spreads for Gold loan growth.This new business strategy helped it cover a lot of lost ground in terms of market share, with a cumulative Gold loan growth of ~24% over 2Q and 3QFY22. This new strategy also meant: elevated advertising/promotion costs and incentives for employees translating in higher operating expenses, and compression in spreads to ~11.5% v/s 14.5-15% under its earlier high yielding business model..Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Below estimates led by higher opex and lower spreads

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li><em><strong>IndiaBulls reported FY 3Q22 results of INR 3.0 bn, improving INR 167 mn (5.8%) linked quarter; results were of poor quality; </strong></em></li>
<li><em><strong>Net new NPLs had increased INR 7.1 bn for the quarter for an annualized rate of increase of 139.6%; and </strong></em></li>
<li><em><strong>Given the continued break in credit, loss reserves appear light close to INR 28 bn – representing seven quarters of PBT and 17.1% of stated equity. </strong></em></li>
</ul>


IndiaBulls reported FY 3Q22 results of INR 3.0 bn, improving INR 167 mn (5.8%) linked quarter; results were of poor quality; 
Net new NPLs had increased INR 7.1 bn for the quarter for an annualized rate of increase of 139.6%; and 
Given the continued break in credit, loss reserves appear light close to INR 28 bn – representing seven quarters of PBT and 17.1% of stated equity. 


IndiaBulls Housing Finance – Manufactured Bottom-Line

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>We interact with four DSC managers of Bandhan Bank, two managers of AU Bank and Manappuram Finance. </li>
<li>For <a href="https://www.smartkarma.com/entities/bandhan-bank-ltd" target="_blank" data-smartkarma-citation="entities:26705:1" rel="noopener">Bandhan Bank Ltd (BANDHAN IN)</a> and <a href="https://www.smartkarma.com/entities/manappuram-finance-ltd" target="_blank" data-smartkarma-citation="entities:12559:1" rel="noopener">Manappuram Finance (MGFL IN)</a> collections remain a challenge. </li>
<li>For <a href="https://www.smartkarma.com/entities/au-small-finance-bank-limited" target="_blank" data-smartkarma-citation="entities:24196:1" rel="noopener">AU Small Finance Bank Limited (AUBANK IN)</a> loan growth in Wheels segment could be challenging. </li>
</ul>


We interact with four DSC managers of Bandhan Bank, two managers of AU Bank and Manappuram Finance. 
For Bandhan Bank Ltd (BANDHAN IN) and Manappuram Finance (MGFL IN) collections remain a challenge. 
For AU Small Finance Bank Limited (AUBANK IN) loan growth in Wheels segment could be challenging. 


India Channel Insight #22 | Bandhan Bank, AU Bank, Manappuram

India

Manappuram Finance Ltd. is a non-banking finance company. The Company offers loans against gold collateral, business loans, vehicle loans, foreign exchange and money transfer services; and sells gold coins.

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Manappuram Finance (MGFL IN)

4QFY22 Results Update - Manappuram Finance

Over the last three quarters, MGFL traded off margin and spreads for Gold loan growth. This naturally dented profitability, with FY22 PAT declining...

Motilal Oswal

Manappuram Finance - Customer Acquisition Weak Amid High Competition, Weak Demand

Manappuram Finance (Manappuram) reported yet another weak quarter, with net profit declining by 42.4% YoY on account of subdued growth in gold loan...

Nirmal Bang

Below estimates led by higher opex and lower spreads

In the last two quarters, MGFL traded off margin/spreads for Gold loan growth. This new business strategy helped it cover a lot of lost ground in...

Motilal Oswal

IndiaBulls Housing Finance – Manufactured Bottom-Line

I-BULLS: IndiaBulls reported a poor quality QOQ FY 3Q22 results increase of 5.8%.Net new NPLs increased at 139.6% annualized, while loss reserves...

Thomas J. Monaco

India Channel Insight #22 | Bandhan Bank, AU Bank, Manappuram

We interact with four DSC managers of Bandhan Bank, two managers of AU Bank and Manappuram Finance to understand the collection and loan growth...

Pranav Bhavsar

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