Motilal Oswal - MAS Financial Services (MASFIN) MOSL: MAS FINANCIAL SERVICES (Buy) - Sailing smooth - Strong growth and healthy asset quality

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Motilal Oswal

MOSL: MAS FINANCIAL SERVICES (Buy) - Sailing smooth - Strong growth and healthy asset quality

MAS FINANCIAL SERVICES: Sailing smooth; Strong growth and healthy asset quality

(MASFIN IN, Mkt Cap USD0.4b, CMP INR613, TP INR750, 22% Upside, Buy)

MAS Financial Services (MASFIN) reported PAT of INR299m (up 2x YoY), driven by higher operating profit (+85% YoY) and stable asset quality.
With disbursement growth of 18% YoY, AUM rose 30% YoY to INR41b. Growth was broad-based across segments (in the range of 20-35% YoY).
The share of various products in total AUM is as follows: MEL: 63%, SME finance: 25%, 2W finance: 9% and CV finance: 4%. Over the past year, the share of MEL + SME finance has increased by ~500bp.
Margins improved 150bp YoY, driven by a 30bp increase in yields and an 80bp decline in CoF. In addition, opex surprised us positively - C/I ratio came in at 23% v/s our estimate of 29%.
Asset quality remains robust. GNPL ratio of 1.15% is among the best in our NBFC coverage universe. However, PCR is modest at 21%.
For FY18, MASFIN recorded 35% YoY PAT growth and RoA (on AUM)/RoE of 2.7%/20%.
MAS Housing Finance: a) AUM growth was modest at 16% YoY (INR2.0b). b) PAT grew only 8% YoY to INR7m. c) GNPL ratio was largely stable at 36bp.

09/05/2018 10 EN

Underlying

MAS Financial Services

MAS Financial Services Limited is an India-based non-banking financial company. The Company is engaged primarily in the business of Financing and all its operations are in India only. The Company is focused on fulfilling the requirements of lower income and middle-income groups of the society. The Company offers various products, such as Micro Enterprise Loan (MEL); Two Wheeler Loan; Small and Medium Enterprises Loan; Commercial Vehicles Loan; Used Car Loan, and Tractor Loan. The Company's Small and Medium Enterprises Loan includes Machinery Loan, Industrial Shed Loan, Working Capital Loan and Loans against Property (LAP). A micro-enterprise under this loan category is usually a small business with a turnover ranging from 25 Lakhs to 2 Crores, engaged into manufacturing, trading or services. The Company's network has over 70 branches in major cities of Gujarat, Maharashtra, Rajasthan, Madhya Pradesh, Tamil Nadu and Karnataka, through which over 3200 centers are catered.

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INE348L01012 National Stock Exchange of India India

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: MAS FINANCIAL SERVICES (Buy) - Sailing smooth - Strong growth and healthy asset quality

MOSL: MAS FINANCIAL SERVICES: Regains its mojo with healthy disbursements and stable asset quality

MOSL: MAS Financial Services (Buy)-Growth slows down, but profitability improves

MOSL: MAS FINANCIAL SERVICES (Buy)-Healthy AUM Growth| Spreads under pressure | Stable asset quality

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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