Buy Mahindra & Mahindra Financial: Vikas Sethi

Buy Mahindra & Mahindra Financial Services, says Vikas Sethi, MD, Sethi Finmart.

Sethi told CNBC-TV18, "Mahindra & Mahindra Financial Services s a leading finance service company from the Mahindra Group and it has around 540 branches across the country. The company did exceedingly well in FY11 with disbursements going up by around 62% and the loan book growing by around 51%. The reason I like this company is because of its dominant presence in the rural and semi urban markets and there is a lot of buoyancy in the markets because of various development programme launched by the government."
He further added, "I expect this company to grow at a CAGR of 25% for the next three years at least and as far as the valuations are concerned the company should be able to report an EPS of Rs 58 for FY12 and at the current market price it trades at just about 11.5 times. So I have a buy recommendation on the stock and my target is Rs 950 in about 12 months."