Edelweiss' research report on Mahindra & Mahindra Financial Services
Mahindra & Mahindra Financial Services’ (MMFS) Q4FY17 PAT at INR2.3bn came lower than estimate on higher provisions. Though GNPLs are optically lower at 9% (>11% in Q3FY17) –a seasonal trend, this quarter it was more to do with higher write-offs.
Outlook
It is perplexing that stock, wherein earnings trajectory has been weak with series of downgrades during down cycle, still retains premium valuations. MMFS’ consequent vulnerability keeps us guarded; moreover, valuations at 3.2x FY19E P/ABV capture near-term cyclical uptick. Hence, maintain ‘HOLD’.
For all recommendations, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
