Manappuram Finance gains after board OKs diversification plans

Manappuram Finance rose 2.57% to Rs 29.90 at 9:56 IST on BSE after the company said its board has approved commencement of micro-financing business and financing against commercial vehicle.

The announcement was made after trading hours on Tuesday, 23 September 2014.

Meanwhile, the BSE Sensex was up 32.57 points, or 0.12%, to 26,808.26.

On BSE, so far 2.95 lakh shares were traded in the counter, compared with an average volume of 12.45 lakh shares in the past one quarter.

The stock hit a high of Rs 30.20 and a low of Rs 29.30 so far during the day. The stock hit a 52-week high of Rs 31.60 on 19 September 2014. The stock hit a 52-week low of Rs 14.05 on 7 January 2014.

The stock was flat in the past one month till 23 September 2014, underperforming the Sensex, which rose 1.35% in the same period. The scrip had, however, outperformed the market in past one quarter, rising 25.11% as against Sensex's 6.97% rise.

The mid-cap company has an equity capital of Rs 168.24 crore. Face value per share is Rs 2.

The board of Manappuram Finance approved the proposal for commencement of micro financing business either as a separate division of the company or by acquiring existing companies in micro financing activity. The board also approved commencement of finance against commercial vehicles.

Net profit of Manappuram Finance declined 16.80% to Rs 43.99 crore on 21.70% decline in net sales to Rs 452.96 crore in Q1 June 2014 over Q1 June 2013.

Manappuram Finance is a leading non-banking financial company (NBFC), providing finance against household gold ornament.

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