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Last Updated : Jan 28, 2019 04:38 PM IST | Source: Moneycontrol.com

Buy Mahindra and Mahindra Financial Services; target of Rs 498: HDFC Securities

HDFC Securities is bullish on Mahindra and Mahindra Financial Services has recommended buy rating on the stock with a target price of Rs 498 in its research report dated January 26, 2019.

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HDFC Securities' research report on Mahindra and Mahindra Financial Services


MMFS’ robust disbursal (+24/22%) and AUM (+31/6%) growth sustained. Asset quality improved as Gross/Net Stage III dipped further, by ~130/20bps to ~7.7/5.8% (in part, optical, due to higher w/os at ~Rs 9.85bn i.e. 17% of Op. Gross Stage III). Calc. NIMs were sequentially flat at ~7.9%. Notably, MMFS continues to expand its reach (added 17 branches in 3Q and 135 in the last 12 months).


Outlook


MMFS’ strong 3Q performance, corroborated by our ground check (Refer to our report titled Better than expected dated 21-Dec-18) reinforces our constructive thesis. Maintain BUY with an SOTP of Rs 498 (2.75x Dec-20 ABV of Rs 174.5 + Rs
18 for MIBL).


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.



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First Published on Jan 28, 2019 04:38 pm
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