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Manappuram Finance Gets 'Buy' Rating, Target Price Boosted

  //business-finance.news-articles.net/content/202 .. inance-gets-buy-rating-target-price-boosted.html
  Published in Business and Finance on Friday, February 20th 2026 at 6:42 GMT by moneycontrol.com
      Locales: Kerala, Tamil Nadu, Maharashtra, Karnataka, INDIA

Kochi, India - February 20, 2026 - Manappuram Finance is poised for significant growth, according to a new report from ICICI Securities. The brokerage firm initiated coverage of the non-banking financial company (NBFC) today with a 'Buy' rating and a target price of INR355 per share, representing a substantial premium over yesterday's closing price of INR256.55. This bullish outlook stems from ICICI Securities' assessment of improving asset quality, sustained growth in the core gold loan business, and the increasingly promising performance of Manappuram's diversification efforts, specifically within the microfinance sector.

Manappuram Finance, headquartered in Kochi, has long been a prominent player in India's gold loan market. The company provides financial services primarily focused on gold loans, but has strategically expanded its portfolio to include microfinance, home loans, and vehicle financing, aiming to reduce reliance on a single product and capture a broader segment of the lending market. The ICICI Securities report appears to validate this diversification strategy.

The report highlights a crucial expectation: stabilization of collection efficiency in the coming quarters. This is a key indicator for any lending institution, and its anticipated improvement suggests that Manappuram is effectively managing its loan book and minimizing potential losses. Analysts believe this stabilization will be driven by proactive risk management strategies and a strengthened recovery process.

While the gold loan segment remains the mainstay of Manappuram's revenue, the report acknowledges its continued growth trajectory. Despite economic fluctuations, the demand for gold loans remains robust in India, fuelled by factors like limited access to formal credit for many, the cultural significance of gold, and its relative safety as an asset. Manappuram's established network and efficient processes position it well to capitalize on this continuing demand.

However, the most exciting aspect of the ICICI Securities assessment is the positive outlook for Manappuram's microfinance business. The report states that the microfinance arm is "picking up," suggesting increasing loan disbursements and healthy growth in this segment. Microfinance institutions play a critical role in financial inclusion, extending credit to underserved populations and small businesses. Manappuram's foray into microfinance aligns with the national agenda of expanding access to financial services and empowering entrepreneurs at the grassroots level.

The potential for growth in the microfinance sector is substantial. India's rural and semi-urban areas represent a vast untapped market for microcredit, and Manappuram appears to be gaining traction in this space. Successful expansion in microfinance will not only diversify revenue streams but also contribute to positive social impact.

At yesterday's closing price, Manappuram Finance boasts a market capitalization of INR13,738 crore. If ICICI Securities' target price of INR355 is realized, it would represent a significant increase in shareholder value. This potential return is likely to attract investor interest and could drive up the stock price in the near to medium term.

It's important to note that investment decisions always carry risk. Market conditions, macroeconomic factors, and company-specific challenges can all impact actual returns. However, the ICICI Securities report provides a compelling argument for the long-term potential of Manappuram Finance, underpinned by its solid fundamentals, strategic diversification, and improving financial performance. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.

Looking ahead, Manappuram Finance is expected to announce its quarterly earnings in the coming weeks. These results will be closely scrutinized by analysts and investors alike, providing further insights into the company's performance and validating or challenging the ICICI Securities' optimistic forecast. The company's management will likely emphasize the progress made in improving asset quality and expanding its microfinance operations during the earnings call.