M&M Finance picks up the pieces, any more upside building?
While the stock of M&M Finance has moved up from its nadir, there is an upside, should the journey going forward is of growth and reduction in asset quality pain
September 27, 2021 / 11:46 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Mahindra & Mahindra Financial Services (M&M Finance; CMP: Rs 181, Market Cap: Rs 22,344 crore) had a dismal Q1FY22, which saw a spike in toxic assets, and a significant provisioning by the management to maintain a high-quality balance sheet.
The net loss was, however, harsh on investors and the stock corrected significantly. Growth also took a back seat. However, in the subsequent months, as the company reported improved collection efficiency and growth, the stock has recovered. Have all the positives...