Reduce Mahindra Finance, target price Rs 263: Centrum Broking

Centrum Broking has a reduce call on Mahindra & Mahindra Financial Services Ltd. with a target price of Rs 263. The current market price of Mahindra & Mahindra Financial Services Ltd. is Rs 273.2. Mahindra & Mahindra Financial Services Ltd., incorporated in the year 1991, is a Large Cap company with a market cap of Rs 33699.08 crore operating in NBFC sector.

Mahindra & Mahindra Financial Services' key Products/Revenue Segments include Interest, Fees & Commission Income, Rental Income, Income From Sale Of Share & Securities for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 4799.45 crore, up 7.15 % from last quarter Total Income of Rs 4479.24 crore and up 16.01 % from last year same quarter Total Income of Rs 4137.00 crore. The company has reported net profit after tax of Rs 901.73 crore in the latest quarter.

The company's top management includes Dr.Anish Shah, Mr.Diwakar Gupta, Ms.Rama Bijapurkar, Mr.Milind Sarwate, Mr.C B Bhave, Mr.Dhananjay Mungale, Dr.Rebecca Nugent, Mr.Amarjyoti Barua, Mr.Ashwani Ghai, Mr.Raul Rebello, Mr.Vijay Kumar Sharma. Company has Mukund M Chitale & Co. as its auditors. As on 31-12-2024, the company has a total of 124 crore shares outstanding.

Investment Rationale
Centrum broking bakes in AUM/PPOP/PAT CAGR at 13%/16%/19% over FY24-FY27E and expects RoA/RoE at 1.9%/13.3% for FY27E. They have rolled over to FY27 and value MMFS (standalone) at 1.5x P/ABV and its subsidiaries at Rs 18 to arrive at the revised Target Price of Rs 263 (Rs 254 earlier). The brokerage has revised its rating from Sell to Reduce.

Promoter/FII Holdings
Promoters held 52.16 per cent stake in the company as of 31-Dec-2024, while FIIs owned 10.49 per cent, DIIs 20.93 per cent.