M&M Finance Shares Surge Over 5% Post Q3 Results, Brokers Optimistic

M&M Finance Shares Surge Over 5% Post Q3 Results, Brokers Optimistic

VoM News Desk | January 31, 2024 | 10:27 AM IST | Breaking News | Follow on Google News

M&M Finance Shares Surge Over 5% Post Q3 Results, Brokers Optimistic/Mint

M&M Finance Shares Surge Over 5% Post Q3 Results, Brokers Optimistic

Mahindra & Mahindra Financial Services witnessed a robust start in the stock market today, with its shares surging over 5% in early trade. The positive momentum followed the company’s Q3 results, which outperformed estimates, driven by improved net interest margins (NIMs), controlled operating expenses (opex), and lower provisions.

Key Financial Highlights: Q3 FY24

• Standalone net profit: ₹553 crore, a 12% decline YoY.
• Net Interest Income (NII): ₹1,815 crore, up 10% YoY.
• Net Interest Margin (NIM): 6.8%, improved sequentially from 6.5%.
• Disbursements: Rose 7% YoY to ₹15,436 crore.
• Collection Efficiency: Recorded at 95% for the quarter.
• Asset Quality Improvement: Stage 3 assets at 4.0%, down from 4.3% in September 2023.

Brokerage Responses:

1. Nuvama Institutional Equities:

• Revised FY24E and FY25E EPS estimates.
• Upgraded the stock to ‘Hold’ from ‘Reduce.’
• Target price raised to ₹280 per share from ₹260.

1. JM Financial:

• Reported PAT significantly higher than estimates.
• Lower credit cost due to ECL model revision and better collection efficiency.
• Maintained a ‘Buy’ rating and raised the target price to ₹345 per share.

1. Motilal Oswal Financial Services:

• Acknowledged the ongoing transformation in product/customer mix.
• Reiterated a ‘Buy’ rating and revised the target price to ₹340 per share.

1. Centrum Broking:

• Expects AUM growth to taper down in Q4FY24 and FY25E.
• Maintained an ‘Add’ rating and raised the target price to ₹306 per share.

1. Emkay Global Financial Services:

• Praised Q3 performance with RoA of 2.1%.
• Reiterated a ‘Reduce’ rating and raised the target price to ₹280 per share.

Market Reaction:

M&M Finance shares surged as much as 5.19% to ₹294.50 apiece on the BSE following the positive Q3 results. The stock is up more than 18% in the past three months and over 24% in the last year.

Note: All figures and percentages mentioned are based on available information at the time of the report.

VoM News Desk

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