Moneycontrol Be a Pro
Get App
Last Updated : Sep 06, 2018 11:40 AM IST | Source: Moneycontrol.com

Buy M&M Financial Services, target Rs 544: Akash Jain

We expect a target of Rs 544 by FY19 end (P/BV of 3.2x on estimated FY19E Book Value of Rs 170) implying an upside of 17 percent, says Akash Jain of Ajcon Global.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Akash Jain 

Ajcon Global

We believe Mahindra & Mahindra Financial Services is cheap as compared to other listed NBFCs. The company improved its Return on Assets significantly from 1 percent in FY17 to 1.9 percent in FY18. With improving rural cash flows, recovery from NPAs would help the company to improve its ROA of 2.6-2.8 percent by FY20.

The management is optimistic on improving rural cash flow which should lead to growth of 18-20 percent in FY19 across segments.

Close

NPAs in the rural housing is expected to reduce in coming quarters as Maharashtra has improved in cash flow and which will translate towards recoveries. PCR stood at 58.1 percent in FY18. We expect a target of Rs 544 by FY19 end (P/BV of 3.2x on estimated FY19E Book Value of Rs. 170) implying an upside of 17 percent.

Disclaimer: The author is Vice President - Equity Research, Ajcon Global. The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 6, 2018 11:40 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour