134.20
1.13%
Motilal Oswal
20 July 2020 Mahindra Finance (MMFS) reported 1QFY21 PAT of INR1.6b (up 128% YoY; down 29% QoQ), a 3% miss. While PPoP beat our estimates by 25%, higher-than-expected provisions at INR8.4b led to the modest PAT miss. While the value of assets financed declined sharply, we note the decline in Tractors was much lower (35% YoY). Around half of the opex cut is sustainable, as per management. Gross Stage 3 assets increased 75bp QoQ to 9.2% due to slippages from tractor owners who had not availed moratorium. provision coverage to 40% QoQ from 31%. ECL% increased to 5.5% v/s 4.4% in 4QFY20 and 3.6% in 1QFY20. MMFS is comfortable on the ALM front, with liability repayments of INR54.7b in 2QFY21, against a cash balance of INR85b.
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Number of Mutual Funds holding stock fell by 7 to 20 in Jun 2020 qtr.
134.20
1.13%
buy
Yes Securities
Lower disbursements (VAF down 67% yoy) and collections (75% of customers under moratorium) directly suppressed large cost components like travelling, commissions and conveyance. Renegotiation of fixed costs (rentals, outsourced services, etc.) and reduction in discretionary costs (advertising, etc.) also pulled down the opex. On-roll manpower has been...
Number of Mutual Funds holding stock fell by 7 to 20 in Jun 2020 qtr.
134.20
1.13%
buy
Keynotes Financial Opiniery
MMFSL is one of leading Non-banking Finance Companies (NBFCs) with customers primarily in the rural and semi urban markets of India. MMFSL benefits from its close relationships with dealers & its longstanding relationships with original Equipment Manufacturers (OEMs) which allow it to provide on -site financing at dealerships. MMFSL is primarily engaged in providing financing...
Mahindra & Mahindra Financial Services Ltd. has lost -65.54% in the last 6 Months
134.20
1.13%
ICICI Securities Limited
Credit cost came in substantially higher at | 674 crore including contingent provision of | 574 crore related to Covid. Amid Covid, seasonal improvement in asset quality in Q4 was absent with GNPA remaining stable at 8.4%. Consequently, PAT declined 62% YoY to | 220.9 crore. Collection efficiency dipped to ~15% in April 2020, improving in May to ~30%. Also, ~75% customers opted for moratorium while ~28-30% branches/ customers are in red zone. Management expect any normalisation in business volumes to happen only post October 2020 with initial traction in...
Number of FIIs/FPIs holding stock fell by 209 to 264 in Jun 2020 qtr.
134.20
1.13%
HDFC Securities
Inexpensive valuations underpin our BUY (TP of Rs 228, 1.4xFY22E ABV + Rs 18 for stake in MIBL) MMFS business and asset quality performance, and consequently earnings were hit by COVID-19, despite 4Q being a seasonally strong qtr. Operating performance is likely to be subdued in the near term. Elevated provisions are likely to persist, weighing down on earnings. A deep rural presence, capable collection infrastructure (as seen in the past) and relatively easy access to funds are positives.
Number of Mutual Funds holding stock fell by 7 to 20 in Jun 2020 qtr.
134.20
1.13%
Prabhudas Lilladhar
30% in red zone) should further weigh down on asset quality and earnings over FY21-22. Consequently, GNPA & credit costs estimates stand marginally tweaked to (7-8% vs 7.5% earlier and 2.4%+ vs 2.3% earlier resp.) prompting to trim EPS estimates by 2-8% over FY21-22E. With return profile (RoE: 9%/RoA:1.2%) offering no respite, we reiterate REDUCE rating with SoTP...
Number of FIIs/FPIs holding stock fell by 209 to 264 in Jun 2020 qtr.
134.20
1.13%
Motilal Oswal
16 May 2020 MMFS 4QFY20 PAT of INR2.2b (down 62% YoY), a 40% miss. The miss in PAT was led by a contingency provision of INR5.7b (we factored in ~INR2.2b) related to COVID-19. Of INR5.7b, INR4.7b was used to increase PCR (800bps QoQ to 31%) for GNPA. Pre-provisioning profits grew 24% YoY (beat of 14%) to INR9.7b as opex (27% beat) declined 24% YoY to INR4.2b. Net income missed our estimate by 3% as loans stood largely flat QoQ (+6% YoY) at INR650b v/s the expectation of ~2% QoQ growth (on March- end COVID-19 restrictions). NIMs/GS3% came in flat QoQ at 7.7%/8.4%.
Mahindra & Mahindra Financial Services Ltd. has lost -34.00% in the last 1 Month
134.20
1.13%
Geojit BNP Paribas
MMFS looking at converting its 85 regional offices to 4-5 large service centers in order to reduce fixed expenses, along with other measures. We revise our estimates for FY20-22E and arrive at a target price of Rs....
Mahindra & Mahindra .. has an average target of 230.00 from 7 brokers.
134.20
1.13%
Geojit BNP Paribas
NII grew 13.4% YoY/ 6.8% QoQ, due to reduction in borrowing cost. Provisions increased 78.1% YoY/10.9% QoQ, due to extra provisioning given challenging economic conditions Asset quality remained under pressure as GNPA/NNPA ratio declining sequentially at 7.6%/6.0% in Q3FY20 (vs 7.2%/5.8% in Q2FY20). We rolled forward the valuation to FY22E and arrive at a target price of Rs. 416 based on SOTP, retain our BUY rating on the stock. NII aids bottom line, partially offset by higher provisions...
Mahindra & Mahindra Financial Services Ltd. has lost -57.75% in the last 1 Year
134.20
1.13%
HDFC Securities
The extent of deterioration in asset quality was surprising, given the usual seasonal trends and the creditable progress made by MMFS until now. NIM improvement and growth trends were positives. As always, MMFS' performance is highly correlated with rural macros. MMFS stands to gain from any improvement here. MMFS 3Q earnings were slightly ahead of estimates, even as provisions remained elevated YoY (+11% QoQ). NIMs expanded QoQ after a prolonged fall and AUM growth was healthy. The increase in GS-III disappointed. Maintain BUY with a TP of Rs 425 (2.25x Dec-21E core ABV of Rs 181 + Rs 18 for MIBL)
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Mahindra & Mahindra Financial Services Ltd. has lost -65.54% in the last 6 Months