We met the management of Mahindra & Mahindra Financial Services (MMFS) and came back encouraged by on-the-ground developments in its markets. Being one of the most widely levered NBFCs to the rural economy, MMFS is witnessing a clear turnaround in both growth and asset quality, with two successive normal monsoons (2016 & 2017) as well as the government's focus on rural spending. Over the past five years, MMFS has almost doubled its branch count- however, most branches are yet to reach full potential. As the company looks to sweat its branch potential with an improving business environment, we expect 15-18 % AUM CAGR over the medium term. In addition, credit costs are expected to decline 100bp over the medium term from 3 % witnessed in FY17.