Buy M&M Financial Services, target Rs 345: JM Financial

JM Financial Research maintains a buy rating on M&M Financial Services (MMFS ) with a 12-month target price of Rs 345. The company is well placed to benefit from rural recovery assuming normal monsoon and pick up in government spending.

MMFS is well balanced on the ALM front with 47 per cent of assets maturing in less than 1 year vs 38% of liabilities. The brokerage firm expects earnings CAGR of 30 per cent over FY16- 18E and return ratios with ROA of 2.4 per cent and ROE of 16 per cent by FY18E.