Mas Financial is a lender to the bottom of the pyramid although its book is largely secured and exposure to microfinance is minimal and that too through well-capitalised NBFC partners. Company has decided to slowdown growth to protect its asset quality.#stockoftheday
MAS Financial Services has reported consolidated net profit of Rs 69.4 crore for the January–March period of FY24, rising 23.3 percent over the same period last fiscal.
Growth is back in Mas after the COVID-19 disruption and the company with its pricing power is maintaining margin despite funding cost headwinds. Asset quality remains pristine and push to housing finance could be a positive surprise
Mas Financial is set for a steady journey as asset quality remains solid amid an overall strong performance
The current valuation of Mas Financial, now at a steep discount to its IPO valuation, presents an opportunity for patient long-term investors
In the context of its growth outlook, MAS Financial’s valuation is at historic lows. MC Pro sees sustained re-rating and recommends buying the stock as a high quality addition in the portfolio. Here’s why
Mas Financial did not pile up toxic assets during the pandemic, unlike other lenders in the unorganised sector. In spite of the challenges, the company has maintained the balance sheet quality. With a better quality of balance sheet and its focused approach to quality-driven growth, the earnings trajectory looks promising from FY23.
We see this weak phase as an opportunity to go long in Mas Financial
Net Interest Income (NII) is expected to increase by 5.2 percent Y-o-Y (up 10 percent Q-o-Q) to Rs. 86.5 crore, according to Motilal Oswal.
FY21 was a difficult year for Mas Financial. Amid the challenging macros, the risk-averse lender went shy on expanding its books, leading to a decline in AUM. But despite setbacks, balance sheet quality has improved, the company has manageable NPAs, excess provision, adequate capital and liquidity.
With valuation at a discount to its listing valuation, this weak phase of Mas Financial is an opportunity for long-term investors
Net Sales are expected to increase by 33.1 percent Y-o-Y (down 2.2 percent Q-o-Q) to Rs. 104.2 crore, according to Motilal Oswal.
Despite the optically expensive valuation, we recommend stock for its consistency – a strategy that is likely to pay dividend in the long term
While a valuation re-rating is unlikely, steady mid-20s earnings growth beckons attention especially for risk averse investors content with a slow but steady earnings growth.
A look at top cues from domestic and international cues that could have a bearing on D-Street.