Manappuram Finance shares fall 15% post RBI action on Asirvad, multiple downgrade

[{"selector":"#anim-c8077127-1e9b-467e-a979-3fe190d2097c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-dd736f8a-e23d-4fcb-b78c-0122eadeecdf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Manappuram Finance Ltd., the gold financing company, has received multiple downgrades and price target cuts from brokerages after the Reserve Bank of India asked its subsidiary Asirvad Micro Finance to stop sanctions and disbursals of loans.

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The Reserve Bank of India took action against Asirvad and three other NBFCs. The NBFCs were found to be in non-adherence on assessment of household income and consideration of repayment obligations in respect of their microfinance loans.

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[{"selector":"#anim-21c29f99-c234-4e8d-8b2b-d1896e6fc9ae","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5b0cdcf-4870-4a76-8ecb-dfc378b8cc15","keyframes":{"transform":["translate3d(0px, 193.85340%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2b11ec33-08e5-4362-8517-3bf1a90c5dc5 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.49187124305653%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Brokerage firm CLSA has maintained its "outperform" rating on the stock but cut its price target to ₹200 from ₹240 earlier.

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[{"selector":"#anim-5dabfc10-2dab-4732-813b-112f93738cd1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.49187124305653%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-6bde9d6d-60b2-4e1c-8e89-6fa033e092bb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d6fe3592-2996-454e-85ac-a1c05138fe00","keyframes":{"transform":["translate3d(0px, 107.01387%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Morgan Stanley has downgraded Manappuram to "Equalweight" from its earlier rating of "Overweight" and also cut its price target to ₹170. It said that the recent RBI embargo could materially hurt profits and for a longer period of time.

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