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Message Icon Topic: Manappuram Gen. Finance & Leasing Ltd Post Reply Post New Topic
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tigershark
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Quote tigershark Replybullet Posted: 20/Jan/2010 at 1:33pm
from where does cheap capital come for this co? does it have to dilute frequently to raise capital. what is the NIM ?
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 20/Jan/2010 at 1:43pm
Business growth received a boost after the company started getting lines of credit from banks like ICICI, Axis, SBI and IDBI. Due to capital and funding constraints the company preferred to assign a majority of its loans to banks. While assigned loans comprised 82% of the total assets under management in FY07, by FY09 the proportion reduced to 65%.The management plans to grow its balance sheet size by increasing the proportion of loans on the company’s books.


The company has Rs 1.3 bn lines of credit
from banks which it can drawdown based upon its disbursement requirements. MAGFIL is able to pass on the increase in cost to its customers and maintain the margins.NIM for FY09 was 16.3%.

The company has established credit lines from various banks and NBFCs. They have an added advantage over other NBFCs as the funds from banks qualify as indirect priority sector lending. Moreover, MAGFIL gives priority to banks with which it has credit lines while assigning/ securitizing its AUM. This helps in reducing the overall cost of funds for the company.

Some banks/ NBFCs that have sanctioned credit lines are SBI (Rs 4 bn), ICICI(Rs 3 bn), IDBI (Rs 1.5 bn), Axis Bank (Rs 1.5 bn), PNB (Rs 1 bn), OBC (Rs 1 bn)and Fullerton (Rs 2 bn).
Take your chances and keep them in a box until a quieter time.
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TCSer
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Quote TCSer Replybullet Posted: 20/Jan/2010 at 1:58pm
Is Muthoot Capital in similar line of business & if so wouldn't be a far cheaper option?

Edited by TCSer - 20/Jan/2010 at 2:00pm
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 20/Jan/2010 at 2:01pm
Muthoot Capital,Shriram city and regional south indian banks can be classified as competition.But MAGFIL is into a niche gold loan business while for the rest gold loan is just another part of the portfolio.Also MAGFIL was afford to make very small ticket loans like 20,000 while it is not cost effective for others to do so.
Take your chances and keep them in a box until a quieter time.
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TCSer
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Quote TCSer Replybullet Posted: 20/Jan/2010 at 2:49pm
Muthoot I believe is also into loan against gold & advertises very heavily in Northern regions.Is that not the case?
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wiseowl
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Quote wiseowl Replybullet Posted: 20/Jan/2010 at 3:55pm
Originally posted by TCSer

Muthoot I believe is also into loan against gold & advertises very heavily in Northern regions.Is that not the case?


Muthoot Fincorp, and not Muthoot Capital,  is the one which gives gold loan.

By the way, there are two "Muthoot" groups...


You alone are responsible for your actions.
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nannu_68
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Quote nannu_68 Replybullet Posted: 20/Jan/2010 at 6:40pm
ek haathi wala hai, dusra pata nahin..Smile
nannu
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prabhakarkudva
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Quote prabhakarkudva Replybullet Posted: 20/Jan/2010 at 6:52pm
Manappuram declared its Q3 2010 results today.

Income from operations is up 3 times at 131 crores.Eps has doubled to Rs.12 per share.Nine month EPS is at 27 compared to FY09 full year EPS of 22.

Good set of results.

Edited by prabhakarkudva - 20/Jan/2010 at 6:52pm
Take your chances and keep them in a box until a quieter time.
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