Accumulate Mahindra and Mahindra Financial Services; target of Rs 330: Geojit Financial Services

Accumulate

Geojit Financial Services research report on Mahindra and Mahindra Financial Services

M&M Financial Services is a non-banking financial company providing asset finance and other financial products and services in rural and semi-urban markets. Net interest income recorded a 15.9% YoY growth to Rs. 1,894cr in Q1FY25, led by increased interest income. Gross non-performing assets (NPA) and net NPA ratios stood at 3.6% and 1.5% respectively, reflecting seasonal deterioration in asset quality. The provision coverage ratio was 59.8%.

Outlook

M&M Financial Services delivered decent numbers in Q1FY25. The company will focus on improving asset quality and disbursements. Increased financing of select asset classes, enhanced collections, insurance tie-ups, and cost optimisation are expected to improve yields, boost margin and improve returns. Therefore, we upgrade our rating on the stock to ACCUMULATE with a revised target price of Rs. 330 based on SOTP valuation.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

M & M Financial Services - 070824 - geo