Buy MAS Financial Services; target of Rs 400: Motilal Oswal

Motilal Oswal is bullish on MAS Financial Services has recommended buy rating on the stock with a target price of Rs 400 in its research report dated July 24, 2025.

Broker Research

July 28, 2025 / 14:19 IST

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26 Aug, 2025 12:21

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Motilal Oswal's research report on MAS Financial Services

MAS Financial Services (MASFIN)’s 1QFY26 PAT grew ~19% YoY to INR839m (in line). Fee income rose ~55% YoY to ~INR300m. Net total income was up 36% YoY to INR2.4b (in line), while opex at INR827m grew ~46% YoY (8% higher than MOFSLe). PPoP was INR1.5b (in line) and grew 31% YoY. Management indicated that the macroeconomic environment has not fully stabilized, which led to AUM growth coming in at the lower end of the guided range. However, it expects the momentum to improve in 2H, aided by a pickup in economic activity and the upcoming festive season.

Outlook

We model a CAGR of 21%/24% standalone AUM/PAT over FY25-FY27E, with RoA/RoE of 2.9%/15% in FY27E. The company has maintained high earnings quality, backed by its risk-calibrated AUM growth. Reiterate BUY with a TP of INR400 (premised on 2.2x Mar’27E BV). Key risk: Slowdown in the economic environment leading to sluggish loan growth and deterioration in asset quality.

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