Manappuram Finance falls despite CLSA upgrade after Q2 results
In short
Manappuram Finance shares fell even after CLSA upgraded its view following Q2 results.
CLSA said the company is keeping operating costs under control and expects the expense ratio to come down. It also said higher credit costs came from more Stage 2 loans, but it does not expect an end loss.
What the reporting says
Manappuram Finance shares fell even after CLSA turned more positive on the company’s Q2 results. CLSA said the lender is containing operating expenses well and expects the expense ratio to trend down, though credit costs were higher than expected because Stage 2 loans increased. The brokerage said it does not expect this to lead to an end loss, keeping the focus on asset quality and costs.
Why it matters
Manappuram Finance came under selling pressure even as CLSA described its cost control as better and kept a constructive view on the results. The note highlights lower expected expenses but also higher-than-expected credit costs due to Stage 2 loans. The market response suggests investors may be focusing more on the credit-cost concern than on the brokerage’s improved outlook.