Buy MAS Financial Services; target of Rs 780: Motilal Oswal

Motilal Oswal's research report on MAS Financial Services

MAS Financial Services’ (MASFIN) PAT (Ind-AS) rose 80% YoY to INR313m, driven by higher operating profit (+64% YoY) and stable asset quality. With disbursement growth of 24% YoY, AUM rose 30% YoY to INR42.5b. Growth was broad-based across segments (in the range of 20-35% YoY). The share of various products in total AUM is as follows: MEL: 64%, SME finance: 24%, 2W finance: 9% and CV finance: 3.4%.

Outlook

We maintain our estimates for FY19/20 and reiterate Buy with a target price of INR750 (24x Jun’20E EPS, implied 4.3x Jun’20E BV).