Sharekhan's research report on Mahindra and Mahindra Financial Services
M&M Financial Services (MMFS) has evolved into a multi-product auto finance NBFC operating pan-India, having deep penetration and rural-centric strong network from being a vehicle financing arm for M&M earlier. Normalisation of credit costs and pick-up in AUMs in FY22E and FY23E would drive earnings and RoE. Stock trades at 1.8x / 1.7x FY2022E / FY2023E on standalone ABVPS; strong parent backing, strong and stable credit rating profile and high capital levels make business attractive.
Outlook
We initiate coverage with a Buy and Price Target (PT) of Rs. 260.
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