Hold Mahindra & Mahindra Financial Services: Parag Jariwala

Parag Jariwala of Religare Capital Markets told CNBC-TV18, "I agree that the performance during this quarter for Mahindra & Mahindra Financial Services was phenomenal. They have done extremely well on all the parameters be it asset quality, margins, even the disbursements have shown 8 percent year-on-year (YoY) jump where if you see last four or five quarters, disbursements were down 8 percent on an average. This is excellent but I would not see this as a new normal for the company because a lot of things are yet to come clear in terms of the rural slowdown which is continuing plus the unseasonal rain and hailstorm is also going to weigh high on the company. A lot of NBFCs are still on 150 or 180 day classification norms for non-performing assets (NPAs)."

"Anything which is bad in terms of asset quality will show in their first quarter or second quarter numbers. So, I would kind of wait for the trend to emerge rather than jumping and buy the stock at current level. We have a hold rating on the stock," he added.