MAS Financial Services jumps 7% on robust Q4 earnings, AUM crossing Rs 10,700 crore

MAS Financial Services’ revenue from operations grew by 24.1 percent YoY to Rs 345.8 crore in the quarter ended March 2024.

Shares of MAS Financial Services zoomed over 7 percent on April 25 on account of strong earnings report for the quarter ended March 2024. The company’s consolidated net profit rose 23.3 percent on-year to Rs 69.4 crore in Q4, and revenue from operations grew by 24.1 percent YoY to Rs 345.8 crore during the same period.

MAS Financial’s disbursements came in strong at Rs 2,866 crore, while assets under management (AUM) rose 25.05 YoY to Rs 10,722 crore. Its provisions stood at Rs 21.4 crore, translating into annualized credit costs of 0.9 percent.

The NBFC’s gross net performing assets (GNPA) and NNPA (based on AUM) were stable sequentially.

According to top analysts at Motilal Oswal, MAS Financial Services has a niche expertise to serve the MSME market and continues to demonstrate healthy loan growth momentum, while its asset quality is perhaps the best among SME lending peers.

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“The company is well positioned to achieve its target AUM CAGR of 20-25 percent, supported by robust liability management, a strong capital base, and a healthy asset quality," the brokerage said.

Historically, the company has managed its liquidity well and continues to have an adequate liquidity buffer on its balance sheet. “We will look to revise our estimates after the analyst call,” Motilal Oswal said, maintaining its ‘buy’ rating on the stock.

At 11:26 am, MAS Financial Services shares were trading at Rs 318.20 on the National Stock Exchange (NSE), up 6.8 percent from the previous close. So far this year, the stock has rallied around 10 percent, outperforming benchmark Nifty 50 which has risen 3 percent during this period.

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