Should I buy Manappuram Finance stock in 2025?

What is Manappuram Finance?

How much is Manappuram Finance stock?

The price of Manappuram Finance stock is showing moderate stability this week. Currently, the stock trades at ₹228.67, reflecting a 0.35% decrease over the last 24 hours and steady performance in weekly trading.

The stock’s beta of 2.66 highlights a higher level of volatility compared to the broader Indian market. Investors should be mindful that while the current valuation is reasonable and trading activity healthy, price movements may remain sensitive to sector developments and market sentiment.

Our full analysis on Manappuram Finance stock

Having conducted an in-depth review of Manappuram Finance’s latest quarterly results alongside its robust three-year stock and sector performance, our multi-factor models have synthesized quantitative financials, technical signals, competitive position, and macro context. This holistic analysis leverages both market data and advanced proprietary analytics to illuminate the risk-adjusted potential of Manappuram Finance at current price levels. So, why might Manappuram Finance once again emerge as a strategic entry point into India’s rapidly evolving financial services sector in 2025?

Recent Performance and Market Context

Over the past twelve months, Manappuram Finance has demonstrated remarkable price appreciation, surging nearly 65% from its 52-week low of ₹138.35 to the current ₹228.67. This move is not just a technical rebound; it coincides with favorable underlying sector dynamics and astute capital management. Despite a mild 0.35% intraday pullback, short-term trading remains stable, evidencing consolidation following an extended rally.

On a macro level, Indian NBFCs—especially those with gold-backed lending exposure—are benefiting from robust consumer financing demand and record-high gold prices (now over ₹9,800/gram for 24K gold). Policy tailwinds, including anticipated rate reductions, support sector liquidity and bolster margins, thus positioning Manappuram well relative to its peers. The company further strengthened shareholder confidence through a May 2025 interim dividend and an ambitious board-approved fund-raising programme of up to $2 billion. This injects flexibility for expansion, emboldening its strategy to diversify revenue streams across microfinance, vehicle loans, home finance, and SME lending.

Technical Analysis

Technical conditions currently tilt in favor of further upside. The stock is trading confidently above its major moving averages—20, 50, 100, and 200 days—signaling a firm, established uptrend. The RSI (14) sits at a neutral 52, indicating there is neither overbought nor oversold pressure, which supports a period of healthy consolidation before potential momentum acceleration.

MACD levels remain non-committal, but the absence of negative crossover signals reflects a supportive underlying structure. Immediate support stands at ₹228.33 with resistance at ₹229.79, creating a tightly bound trading channel. Sustained trading near these thresholds, coupled with elevated average volumes, suggests institutional accumulation rather than mere speculative trading. The technical set-up, in essence, makes Manappuram appear well-positioned for another potential breakout, with the risk-reward profile notably skewed to the upside should market sentiment turn increasingly bullish.

Fundamental Analysis

Manappuram’s fundamentals continue to justify renewed interest. During Q4 FY2025, while a net loss of ₹203.2 crore was reported (primarily from one-off impairment charges), the underlying business picture is more nuanced and increasingly constructive. Gold loan portfolio growth remains robust at an impressive 19% YoY and 4% sequentially—gold loans now comprise nearly 60% of total assets under management, highlighting the company’s continued market leadership.

• Attractive Valuation: The stock is trading at a P/E of 16.5, comparatively reasonable within the NBFC sector, and especially attractive given high-growth peers commanding premium multiples.
• Resilient Book Value: Shares trade at a modest premium to book value (₹147/share), offering margin of safety.
• Strong RoE/ROCE: With ROE at 9.78% and ROCE at 11%, profitability metrics remain healthy in spite of recent earnings volatility.
• Diversification: Rapid expansion across microfinance, vehicle finance, and SME lending provides a cushion against concentration risks and extends total addressable market.
• Technology Edge: The company is an early adopter of digital lending platforms, enabling scale and efficiency gains as the gold loan market migrates online.

All told, these factors create a compelling blend of growth, stability, and prudent risk management—supporting a bullish structural thesis for the stock.

Volume and Liquidity

Sustained trading volumes—closely monitored both by institutional and retail investors—bear testimony to the stock’s liquidity and broad-based participation. Recent volume patterns have shown healthy absorption at higher price levels, a clear sign of underlying market confidence and of dynamic price discovery well-supported by the current free float structure.

Such liquidity reduces execution risk, enhances price stability, and enables nimble portfolio allocation for both short-term traders and long-term investors, making Manappuram Finance an arguably attractive candidate for both strategic and tactical positioning.

Catalysts and Positive Outlook

• Digital Gold Loans: The scaling up of online gold lending platforms enhances reach, convenience, and operational efficiency, catalyzing AUM growth and margin expansion.
• Favorable Macro Trends: India’s gold loan market is projected to double over the next five years, driven by persistent high gold prices, expanding middle-class credit demand, and favorable demographics.
• Sector Growth: NBFC gold loan portfolios themselves are forecasted to grow at 17–19% CAGR for FY2025—translating into substantial revenue and profit potential for established players.
• Regulatory and Fiscal Environment: Potential RBI rate cuts would ease funding costs, while industry-specific reforms may further foster sector stability and innovation.
• ESG and Governance: Manappuram’s robust corporate governance structure, coupled with its commitment to financial inclusion and digitalization, aligns well with global and domestic ESG imperatives.

Other catalysts include the recently announced capacity for substantial fund-raising, continued expansion into underserved geographies through its extensive network of 5,000+ branches, and new product innovation—particularly in microfinance and SME lending.

Investment Strategies

• Short-Term: With the RSI and MACD in neutral territory and the price hugging key support, tactical traders could position for upside momentum as soon as volumes begin to spike above average—potentially targeting the upper channel resistance at ₹229.79 and the 52-week high at ₹247.60.
• Medium-Term: Investors with a 6–12 month horizon may take advantage of any further price consolidation to accumulate, capitalizing on expected catalysts such as digital gold loan growth, potential rate cuts, and positive sectoral flows.
• Long-Term: Over a multi-year period, the ongoing market expansion, product diversification, and digital transformation story offer scope for substantial compounded growth. Entry at or around current price levels appears justified by attractive valuations and strong underlying franchise value.

For all horizons, portfolio managers may view this as an opportunity to increase exposure ahead of expected sector-wide AUM expansion and as a hedge against both rising gold prices and potential financial sector rotation.

Is it the Right Time to Buy Manappuram Finance?

In summary, Manappuram Finance stands on the cusp of a compelling new growth phase. The stock’s 65% rally over the last year, resilient underlying core loan growth, moderate valuation, and advanced technology credentials are complemented by clear medium-term sector tailwinds. Despite a temporary earnings setback in Q4 FY2025, the growth runway for both digital and traditional gold loans remains long and unobstructed, while the company’s ambitious capital-raising plans and broadened product strategy reduce idiosyncratic risk and enhance shareholder value over the cycle.

The convergence of technical strength, sound fundamentals, buoyant liquidity, and a host of positive structural catalysts suggests that Manappuram Finance may well be entering a new bullish chapter. While remaining vigilant on regulatory and asset quality trends, the fundamentals convincingly justify renewed interest, making this stock worthy of close consideration as a dynamic, high-potential component within a diversified portfolio.

In a landscape defined by transformation and opportunity, Manappuram Finance appears uniquely positioned for continued leadership; for investors seeking exposure to India’s next financial services growth story, the present conditions seem to represent an excellent opportunity to assess a strategic entry.

How to buy Manappuram Finance stock in IN?

Buying shares of Manappuram Finance online is both straightforward and secure when you use a regulated broker in India. Today, you can invest in Manappuram Finance either through direct, spot (cash) buying or by trading Contracts for Difference (CFDs). Spot buying means you actually own the shares; with CFDs, you speculate on the price without owning the stock. Both methods are accessible online with just a few clicks. To help you find the right fit, you'll find a detailed broker comparison further down the page.

Cash buying

When you buy Manappuram Finance stock in cash, you become a shareholder—owning real shares listed on the National Stock Exchange of India (NSE), settled and held in your Demat account. Brokers typically charge a fixed commission per order (for example, ₹20–₹30), plus nominal transaction taxes and charges set by the exchange.

Example

Example:
Let’s say Manappuram Finance is trading at ₹228.67 per share, and you want to invest $1,000 (about ₹83,800 at a rate of $1 = ₹83.8). Excluding minor charges, you could buy around 366 shares (₹83,800 / ₹228.67), after factoring in an average brokerage fee of ₹420 (about $5).
✔️ Gain scenario:
If the share price increases by 10% to ₹251.54, your holdings would be worth about ₹92,180 ($1,100).
Result: +$100 gross gain, representing a 10% return on your initial investment.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movements of Manappuram Finance shares—either up or down—without owning the stock itself. Instead, you enter a contract with a broker to exchange the difference in price. CFD trading typically involves paying the “spread” (the difference between buy/sell prices) and overnight financing fees if positions are held beyond market hours.

Example

Example:
You open a CFD position on Manappuram Finance using $1,000 with 5x leverage, giving you exposure to $5,000 worth of shares (approx. ₹419,000).
✔️ Gain scenario:
If Manappuram Finance rises by 8%, your position earns 8% × 5 = 40%.
Result: +$400 profit on your initial $1,000 stake (fees such as spread and overnight financing will reduce net gains).

Final advice

Before you invest, it is always important to compare the fees, platforms, and service quality of different brokers, as these can impact your profits over time. Whether you opt for direct share ownership or CFD trading will depend on your investment goals, risk appetite, and strategy. Take your time to assess the options—our broker comparison further down the page can help you make the best choice for your needs.

Our 7 tips for buying Manappuram Finance stock

The latest news about Manappuram Finance

Manappuram Finance has declared an interim dividend of ₹0.50 per equity share in May 2025, continuing its track record of shareholder returns. This announcement, made alongside its quarterly financial disclosures, underlines management’s commitment to rewarding investors even amidst quarterly headwinds. For Indian investors, the dividend yield stands at a competitive 1.55%, and the dividend is processed in accordance with prevailing Indian tax regulations.

The company’s gold loan portfolio grew by 19% YoY and 4% QoQ, reiterating its strong position in India’s expanding gold loan market. Gold loans now comprise 59% of the company’s Assets Under Management, up from 55% in the previous quarter, benefiting as Indian gold prices touched record highs in April 2025. This core segment’s performance is crucial, considering India’s NBFC sector is forecast to expand its gold loan book by 17-19% in FY2025, with Manappuram poised to retain its leadership due to its vast branch network and focus on underserved areas.

Manappuram Finance’s board approved raising up to $2 billion (approximately ₹17,000 crore) via various instruments, strengthening its capital base for future expansion. This substantial fundraising mandate equips the company to not only fuel continued growth across gold finance but also to fund diversification into vehicle, microfinance, and SME lending, directly impacting its ability to serve a broader segment of India’s population and reducing concentration risk associated with gold loans.

The company is accelerating its digital transformation, with a special emphasis on online gold loans, positioning itself at the forefront of fintech adoption in India’s NBFC sector. Early adoption and scaling of digital services not only improve customer convenience and operational efficiency but also enable faster loan disbursements and wider market reach. This focus is highly relevant as the Indian gold loan market is expected to double in the next five years, and digital solutions are anticipated to be a key growth lever, enhancing Manappuram’s competitive edge.

Despite reporting a consolidated net loss in Q4 FY2025, technical indicators and share price trends remain broadly positive, reflecting underlying market confidence. Although the loss (₹203.2 crore) was primarily driven by higher impairment charges, the stock has exhibited robust performance, rallying nearly 65% over the past year and trading above all major moving averages. Technical metrics such as the neutral RSI and MACD, alongside healthy market volumes, indicate that investors remain optimistic about the company’s medium- to long-term prospects, especially in light of expected growth in India’s NBFC and gold loan sector.

FAQ

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.