M&M Financial rallies 20% on strong Q4, brokerage upgrade

NEW DELHI: M&M Financial Services Ltd rallied 20 per cent in opening trade on Thursday to hit its 52-week high of Rs 247.25, after the company reported 43 per cent year-on-year (yoy) growth in its consolidated net profit at Rs 346 crore for the March 2013 quarter.

At 10:50 am; M&M Financial Services pared some of its market gains and was trading 10 per cent higher at Rs 224.85. It hit a low of Rs 214.05 and a record high of Rs 247.25 in trade today.

The non-banking finance company had profit of Rs 242 crore in year ago quarter. The company’s total income in the reporting period jumped 33 per cent to Rs 1,126 crore on YoY.

Credit Sussie in its latest note has upgraded Mahindra & Mahindra Financial Services Ltd stock from ‘underperform’ to’ neutral’ rating. The brokerage has also upped the price target from Rs 182 earlier to Rs 200.

Although Credit Suisse believes the disbursement growth will slow down going forward but they are confident that company can maintain loan growth at 25 per cent+.

The brokerage firm has also upped the EPS estimates by 8-9 per cent for FY14 & FY15.