Anand Rathi Share and Stock Brokers
Mahindra & Mahindra Financial Services’ strength is vehicle financing which is showing good traction across products & geography. The company’s housing finance loan growth is expected to expand 18-20 percent CAGR. The main driver for improvement in RoA would be gradual increased share of SME business going ahead.
M&M Financial will foray into financing two-wheelers and consumer durables. Normal monsoon, higher farm income and government spending will give boost to the company’s business.
The company has a strong rural and semi-urban area presence with 1284 offices covering 27 states and four union territories.
It has a healthy mix of vertical lending across products and geographic mix which reduces volatility and risk.
We have a buy coverage on M&M Financial with a target of Rs 609 based on 21.90x FY20E EPS of 27.80.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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