Moneycontrol
Get App
Last Updated : May 18, 2020 05:01 PM IST | Source: Moneycontrol.com

Hold Mahindra and Mahindra Financial Services; target of Rs 160: ICICI Direct

ICICI Direct recommended hold rating on Mahindra and Mahindra Financial Services with a target price of Rs 160 in its research report dated May 18, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Mahindra and Mahindra Financial Services


Mahindra & Mahindra Financial Services (MMFS) reported a weak performance with provision related to Covid impacting earnings. Advances growth stayed subdued at ~6.1% YoY to Rs 64993 crore, led by auto volume slowdown. Disbursement fell 21% YoY, led by 59% fall in CV, 25% decline in cars and 10% decline each in auto/ tractors. Gross spread saw a decline of ~40 bps YoY to 7.7%, led by a decline in yields and higher cost of funds.


Outlook


Hence, we revise our estimates downwards for FY21-22E. Thus, we lower our target price to Rs 160, valuing core auto business at ~1.5x FY22E ABV and ~Rs 21 as value for subsidiaries (post assuming 20% holding company discount). We maintain HOLD rating.


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.




Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 18, 2020 05:01 pm
Sections
Follow us on