Why Mas Financial is a great long-term buy now
With the lacklustre performance of the stock, the valuation of Mas Financial has corrected to a level that was prevailing at the time of its IPO in 2017. We feel this is a great opportunity for long-term investors
August 16, 2021 / 04:12 PM 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
The last financial year (FY21) was difficult for Mas Financial (CMP: Rs 773, Market Cap: Rs 4,226 crore) and the weakness continued in Q1FY22, thanks to the second wave of the pandemic. The stock’s over 20 per cent under-performance vis-a-vis the Nifty in the past three months more than adequately captures the concerns.
Being a lender to smaller businesses and mostly self-employed individuals, the going was bound to be tough. But Mas did not lose the plot — while growth...