Buy Mahindra & Mahindra Financial Services, target price Rs 290: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Mahindra & Mahindra Financial Service with a target price of Rs 290. The current market price of Mahindra & Mahindra Financial Services is Rs 256.4.

Mahindra & Mahindra Financial Services., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 31654.28 Crore) operating in NBFC sector.

Mahindra & Mahindra Financial Services key Products/Revenue Segments include Interest, Fees & Commission Income, Income From Sale Of Share & Securities, Rental Income for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3352.82 Crore, up 10.68 % from last quarter Total Income of Rs 3029.28 Crore and up 12.30 % from last year same quarter Total Income of Rs 2985.65 Crore. Company has reported net profit after tax of Rs 657.03 Crore in latest quarter.

The company’s top management includes Dr.Anish Shah, Mr.Ramesh Iyer, Mr.C B Bhave, Mr.Dhananjay Mungale, Mr.Milind Sarwate, Ms.Rama Bijapurkar, Dr.Rebecca Nugent, Mr.Siddhartha Mohanty. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 124 Crore shares outstanding.

Investment Rationale
The brokerage expects sustained improvement in stage-2 assets, and stage-3 assets are expected to reduce by another 100 bps in the near to medium term as guided by the company. Earnings trajectory is expected to be healthy, driven by lower credit cost.

Promoter/FII Holdings
Promoters held 52.16 per cent stake in the company as of 31-Dec-2022, while FIIs owned 16.09 per cent, DIIs 16.6 per cent.