Mahindra & Mahindra Financial Services Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for M&MFIN, BSE:532720 Mahindra & Mahindra Financial Services Ltd.

Mahindra & Mahindra Financial Services Ltd.

24 Apr 2019

278.95

-1.83%

AUM growth remains robust; strong GNPL recoveries

Buy: Mahindra & Mahindra Financ...

Target

Motilal Oswal

Improvement in asset quality was the key positive in the quarter. This was also reflected in volume terms, with the number of NPL contracts down ~30% QoQ. However, MMFS lowered its PCR on Stage 3 GNPLs to 19% from 27% in the prior quarter, which Over the past six quarters, MMFS has witnessed a significant improvement on most parameters AUM growth, margins and asset quality. The company has been gaining market share across all existing products and has expanded into newer products like pre-owned vehicles and CV/CE. NPLs have declined to a multi-quarter low. With strong AUM growth, improved branch productivity and low credit costs, MMFS is likely to maintain 2.5% RoA/16% RoE over the medium term, in our view. Value of assets financed for SMEs declined sharply from INR18b to INR1b, while that in vehicle finance increased 16% YoY to INR116b.

Number of FII/FPI investors increased from 254 to 268 in Jun 2025 qtr.

Mahindra & Mahindra Financial Services Ltd.

12 Mar 2019

278.95

-1.83%

M&M; Financial Services

Buy: Mahindra & Mahindra Financ...

ICICI Securities Limited

Strong business momentum led by rural cash flow, high NIM For MMFS, AUM has grown at 23% CAGR with volatile spells in FY09-18. AUM grew at 32% CAGR in 09-14, slowed down in FY15-17 to 10% and then revived to 16% in FY16-18 to | 55,100 crore. We expect AUM to grow at 20% CAGR in FY19-21E to | 94,996 crore. Robust infrastructure spends and recent farmer friendly schemes are expected to support rural cash flows. Current NIM at ~8% is expected to remain stable over the next two years as it has already moderated from highs of 9.2% in the past....

Mahindra & Mahindra .. has an average target of 306.83 from 6 brokers.

Mahindra & Mahindra Financial Services Ltd.

28 Feb 2019

278.95

-1.83%

MAHINDRA & MAHINDRA FIN. SERV. LTD

Buy: Mahindra & Mahindra Financ...

Recommendation

Geojit BNP Paribas

In spite of a challenging environment and tight liquidity, asset quality improved by write-offs and seasonal improvement. Gross and Net non-performing asset (NPA) ratios (stage 3) improved by 130 bps and 20 bps sequentially in Q3FY19 to 7.7% and 5.8%, respectively. Importantly, the number of NPLs contracts declined QoQ, implying improvement in the underlying trend. However, higher write-offs led to decline (800 bps QoQ) in provision coverage ratio (PCR) to 26.9%. Going forward, we expect rural cash flow to improve with increased government focus on rural initiatives, hence, collections will improve further. Thus, we project Gross/Net NPA ratios...

Mahindra & Mahindra .. has an average target of 306.83 from 6 brokers.

Mahindra & Mahindra Financial Services Ltd.

26 Jan 2019

278.95

-1.83%

Mahindra & Mahindra Financial Services (3QFY19): Worth its mettle. Maintain BUY

Buy: Mahindra & Mahindra Financ...

Target

HDFC Securities

Maintain BUY with an SOTP of Rs 498 (2.75x Dec-20 ABV of Rs 174.5 + Rs 18 for MIBL). MMFS robust disbursal (+24/22%) and AUM (+31/6%) growth sustained. Asset quality improved as Gross/Net Stage III dipped further, by ~130/20bps to ~7.7/5.8% (in part, optical, due to higher w/os at ~Rs 9.85bn i.e. 17% of Op. Gross Stage III). Calc. NIMs were sequentially flat at ~7.9%. Notably, MMFS continues to expand its reach (added 17 branches in 3Q and 135 in the last 12 months).

Mahindra & Mahindra .. has an average target of 306.83 from 6 brokers.

Mahindra & Mahindra Financial Services Ltd.

25 Jan 2019

278.95

-1.83%

Stable quarter despite tough environment

Buy: Mahindra & Mahindra Financ...

Target

Motilal Oswal

MMFS reported PAT of INR3.2b (14% miss), driven by higher-than- expected opex and tax rate. Adjusted for INR500m profit on MIBL stake sale in 3QFY18, PAT declined by 8% YoY. AUM and disbursements remained on a robust growth trajectory. grew 6% QoQ (+30% YoY) to INR631b. MMFS maintained spreads on a sequential basis at 6.9%, despite a 26bp sequential increase in cost of funds to 8.76%. Total provisions as a percentage of loans stood at 1.9% v/s 3.0% a quarter ago and 4.1% a year ago. PCR including standard assets provisions declined QoQ by 1,000bp to ~49%. This was largely due to write-off of INR9.85b during the quarter.

Mahindra & Mahindra Financial Services Ltd. is trading above all available SMAs

Mahindra & Mahindra Financial Services Ltd.

18 Dec 2018

278.95

-1.83%

MAHINDRA & MAHINDRA FIN. SERV. LTD

Hold: Mahindra & Mahindra Financ...

Geojit BNP Paribas

Net interest income (NII) grew at a robust pace of 28% YoY (in line with our expectation) supported by 35 bps expansion in net interest margin (NIM) to 7.8% in Q2FY19. NIM improved as improving asset quality helped the company to outweigh rise in cost of funds. Cost to income (C/I) ratio declined by 453 bps YoY to 35.1% as operating efficiency kicked in. As a result, pre-provisioning profit increased at a faster pace of 38% YoY. Net profit jumped by 4.9x YoY mainly due to low base of Q2FY18. Going forward, we expect net profit to increase at a CAGR of 35% over FY18-20E on the back of improving NIM (~8.2%) and declining provisioning expenses....

Number of FII/FPI investors increased from 254 to 268 in Jun 2025 qtr.

Mahindra & Mahindra Financial Services Ltd.

25 Oct 2018

278.95

-1.83%

Mahindra & Mahindra Financial Services (2QFY19): Hard work pays off. Maintain BUY

Buy: Mahindra & Mahindra Financ...

Target

HDFC Securities

Maintain BUY with SOTP of Rs 487 (2.75x Sept-20 ABV of Rs 171 + Rs 18 for MIBL). MMFS superior performance across parameters yet again, was astonishing. Multi-qtr high broad based disbursals growth (43%) drove an AUM growth of 26%. Asset quality improved as gross/net stage III was lower by 40/30bps QoQ to 9/6% even as provisions dipped sequentially. Calc. NIMs expanded 30bps to 7.9% with better asset quality and slower rise in CoF. This lead to a 33% beat to our net earnings estimates.

Mahindra & Mahindra .. has an average target of 306.83 from 6 brokers.

Mahindra & Mahindra Financial Services Ltd.

24 Oct 2018

278.95

-1.83%

Strong performance across parameters; asset quality impressive

Buy: Mahindra & Mahindra Financ...

Target

Motilal Oswal

MMFS reported PAT of INR3.8b (up ~1.5x YoY) under Ind-AS. The quarter was marked by robust disbursement and AUM growth, and an improvement in margins. Consequently, reported AUM grew 6% QoQ (+27% YoY) to INR595b. Over the past year, the share of Auto/UV declined from 28% to 25%, the impact of which was offset by an increase in the share of SME financing (12% to 14%). Calculated NIM on AUM expanded 130bp YoY to 8.4%, driven largely by a higher yield on loans (driven by product mix and general yield hikes), despite an increase in cost of funds. Total provisions as a percentage of loans stood at 3.0% v/s 3.1% a quarter ago and 4.3% a year ago. PCR including standard assets provisions was largely stable QoQ at ~59%. Management commented that it is presently borrowing from every possible source. However, it is keeping a close watch on the evolving liquidity situation.

Number of FII/FPI investors increased from 254 to 268 in Jun 2025 qtr.

Mahindra & Mahindra Financial Services Ltd.

06 Sep 2018, 12:00AM

278.95

-1.83%

M

Buy: Mahindra & Mahindra Financ...

Target

JM Financial

Look beyond the rates; significant improvement in profitability ahead Key takeaways from our meeting with Mahindra Finance (MMFS) management: i) Disbursement growth remains strong for July/August at c.30%. Management expects 20%+ AUM growth in FY19 (vs. 18% in FY18) which could accelerate to 25% in FY20 ii) Asset quality is significantly improving and company has witnessed 5% improvement in collection efficiency during July/August; Management expects GNPL to reduce to 7% by FY19 (vs. 9.4% in Q1) iii) MMFS expects 15bps increase in average outstanding cost of funds (incremental cost of funds up 75bps) which will be passed on via higher lending rate; iv) NPLs...

Mahindra & Mahindra Financial Services Ltd. is trading above all available SMAs

Is Mahindra & Mahindra Financial Services Ltd. worth buying?

441 Votes:

Buy 77.32%

Sell 13.83%

Hold 8.84%

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