Buy Mas Financial Services, target price Rs 840: Axis Securities
Mas Financial Services Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4050.46 Crore) operating in NBFC sector.
By ETMarkets.com | Updated:
Axis Securities has buy call on Mas Financial Services with a target price of Rs 840. The current market price of Mas Financial Services is Rs 743.35. Time period given by analyst is one year when Mas Financial Services Ltd. price can reach defined target.
Mas Financial Services Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4050.46 Crore) operating in NBFC sector.
Mas Financial Services Ltd. key Products/Revenue Segments include Interest, Income From Financial Services, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 205.70 Crore, up 9.02 % from last quarter Total Income of Rs 188.68 Crore and up 31.42 % from last year same quarter Total Income of Rs 156.52 Crore. Company reported net profit after tax of Rs 46.38 Crore in latest quarter.
Investment Rationale
MAS emerged stronger post navigating the pandemic-related headwinds and remains well- poised to grow with macros normalising. With disbursement and AUM growth accelerating and the momentum expected to continue, the brokerage expects MAS to deliver a strong 26/25% YoY AUM growth over FY23/24E. With a shift towards the direct sourcing model, though Opex is likely to inch up gradually, improving NIMs, and benign credit costs will help MAS deliver a strong RoA of 3.3-3.4% and maintain its RoE between 15-17% over FY23-24E. Despite the sharp run-up in the stock (+21% in the past month), the current valuations (2.3x FY24 BV) seem reasonable given MAS’ improving NIMs, strong return ratios, and stable asset quality and are also below its avg P/BV multiple of ~3x. It maintains BUY rating on the stock with a revised target price of Rs 840/share (2.6x FY24E BV), implying an upside of 14% from the CMP.
Promoter/FII Holdings
Promoters held 73.64 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.53 per cent, DIIs 9.46 per cent.
Mas Financial Services Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4050.46 Crore) operating in NBFC sector.
Mas Financial Services Ltd. key Products/Revenue Segments include Interest, Income From Financial Services, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 205.70 Crore, up 9.02 % from last quarter Total Income of Rs 188.68 Crore and up 31.42 % from last year same quarter Total Income of Rs 156.52 Crore. Company reported net profit after tax of Rs 46.38 Crore in latest quarter.
Investment Rationale
MAS emerged stronger post navigating the pandemic-related headwinds and remains well- poised to grow with macros normalising. With disbursement and AUM growth accelerating and the momentum expected to continue, the brokerage expects MAS to deliver a strong 26/25% YoY AUM growth over FY23/24E. With a shift towards the direct sourcing model, though Opex is likely to inch up gradually, improving NIMs, and benign credit costs will help MAS deliver a strong RoA of 3.3-3.4% and maintain its RoE between 15-17% over FY23-24E. Despite the sharp run-up in the stock (+21% in the past month), the current valuations (2.3x FY24 BV) seem reasonable given MAS’ improving NIMs, strong return ratios, and stable asset quality and are also below its avg P/BV multiple of ~3x. It maintains BUY rating on the stock with a revised target price of Rs 840/share (2.6x FY24E BV), implying an upside of 14% from the CMP.
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Promoter/FII Holdings
Promoters held 73.64 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.53 per cent, DIIs 9.46 per cent.
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