Buy MAS Financial Services; target of Rs 320: Motilal Oswal

Motilal Oswal's research report on MAS Financial Services

MASFIN’s 4QFY25 PAT grew ~19% YoY to INR808m (in line). FY25 PAT rose ~23% YoY to INR3.1b. Net total income was up 34% YoY to INR2.3b (5% beat), while opex at INR744m grew ~34% YoY (in line). PPoP stood at INR1.5b (5% beat) and grew 35% YoY. MASFIN reiterated its medium- to long-term AUM growth guidance of ~20-25% with a continued focus on maintaining healthy asset quality. The company targets to reach AUM of ~INR200b within the next three years. Additionally, the company expects SME lending to be the key growth driver in FY26.

Outlook

We estimate a ~24% PAT CAGR over FY25-27E, with RoA/RoE of ~2.9%/15% in FY27E. Reiterate BUY with a TP of INR320 (based on 1.8x Mar’27E BV).

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