Manappuram Fin: Bain deal sets stage for expansion

BAIN CAPITAL'S DEFINITIVE agreement for joint control of Manappuram Finance marks a positive strategic step, potentially ushering in the next phase of growth.

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The partnership could drive transformation in leadership, operational efficiency, and governance, which over time may enhance business quality and accelerate growth across key segments—ultimately supporting a re-rating in valuation multiples.

We maintain our Buy rating. We value the stock at 1.4x FY27E P/B for the gold loan business (implying a 1.3x multiple on a higher capital base), translating to a consolidated valuation of 1.3x FY27E P/B. Key risks include delays in the proposed transaction, potential adverse regulatory developments, rising competition in the gold loan segment, and asset quality pressures in the non-gold portfolio.