Buy MAS Financial Services; target of Rs 380: Motilal Oswal

Motilal Oswal is bullish on MAS Financial Services recommended buy rating on the stock with a target price of Rs 380 in its research report dated November 18, 2025.

Broker Research

November 19, 2025 / 11:08 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on MAS Financial Services

MAS Financial (MAS) navigated 1HFY26 with prudence amid macro moderation and sectoral stress. It maintained a strong focus on both portfolio quality and profitability. With improving economic conditions, better borrower cash flows driven by festive demand, and lower rejection rates, the business momentum and AUM growth are likely to rebound in 2H. The company’s diversified, multi-product model targets the credit needs of underserved low- and middle-income segments, providing a long runway for scalable growth. MAS is also building a ‘mini-NBFCs within NBFC’ structure, appointing dedicated heads and teams for each segment to enhance agility, accountability, and execution focus. MAS plans to maintain its MSME exposure at ~55–60%, while scaling up the Wheels business (a key focus area) and piloting new segments such as used-car financing and embedded finance. Management targets to scale up the AUM to ~INR250–300b over the next 3–4 years.

Outlook

We estimate ~21% PAT CAGR over FY25-28, with an RoA/RoE of ~2.9%/15.5% in FY28. We reiterate our BUY rating on the stock with a TP of INR380 (based on 2x Sep’27E BV).

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