Motilal Oswal's research report on MAS Financial Services
MAS Financial Services (MASFIN)’s PAT rose 28% YoY to INR491m (in line) in 2QFY23. NII grew 48% YoY to INR1.2b (7% beat). PPOP rose 28% YoY to INR775m (in line) during the quarter. PAT grew 27% YoY to INR956m in 1HFY23 (PY: INR752m). Disbursements surged 75% YoY to INR441b in 1HFY23 (PY: INR252b). Credit costs grew 35% YoY to INR121m (est. INR99m). Total COVIDrelated provisions stood at INR219m (~0.4% of on-book assets). In 2QFY23, disbursements grew 5% QoQ and 53% YoY to ~INR22.6b. Asset quality was stable QoQ, with GS3/NS3 at 2.3%/1.6%. In MSME and SME lending, MASFIN remains relatively better placed than its peers. Capital adequacy and liquidity on the Balance Sheet remained healthy.
Maintain BUY with a TP of INR1,060 (premised on 3.5x FY24E BV).
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