Mahindra & Mahindra Financial Services Ltd., incorporated in the year 1991, is a Large Cap company (having a market cap of Rs 25476.63 Crore) operating in NBFC sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2992.94 Crore, down -2.53 % from last quarter Total Income of Rs 3070.50 Crore and down -2.87 % from last year same quarter Total Income of Rs 3081.30 Crore. Company reported net profit after tax of Rs -247.61 Crore in latest quarter.
Investment Rationale
Valuations at 1.7x FY23E ABV look reasonable considering asset quality concerns seem overdone and metrics are looking up hereon. It maintains ADD with a revised TP of Rs220 (assigning 1.9x FY23E ABV, earlier Rs175). Key risks – asset quality volatility and growth moderation.
Promoter/FII Holdings
Promoters held 52.2 per cent stake in the company as of Dec 30, 2020, while FIIs held 22.7 per cent, DIIs 11.6 per cent and public and others 11.1 per cent.
