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MOSL: Morning India (12/January/18): 1. MAS Financial (Initiating Coverage): Grassroots financier; 2. TCS; 3. IndusInd Bank; 4. Shree Cement; 5. Hindustan Media

MOrning India (12/January/18): 1. MAS Financial (Initiating Coverage): Grassroots financier; 2. TCS; 3. IndusInd Bank; 4. Shree Cement; 5. Hindustan Media

Today’s top research idea
MAS Financial (Initiating Coverage): Grassroots financier; An efficient player in high growth product segment
Run by first-generation entrepreneurs since 1995, MAS Financial Services (MASFIN) is an NBFC operating out of six states, primarily Gujarat and Maharashtra. A quintessential NBFC, it targets the middle and low income customer segments.
Over the past five years, MASFIN's AUM grew at a robust 35% CAGR to reach INR37b. Growth was driven by their flagship product (MEL loans) and new product such as SME loans. The company has impeccable track record of 39% PAT CAGR over FY12-17 with consistent ROA (on AUM) of 2%+. At the same time, the company has always maintained GNPL ratio & credit costs both close to ~1% - among the best in our NBFC coverage.
Given a favorable backdrop, we expect the company to deliver 25% AUM CAGR and 25% EPS CAGR over FY17-20E.

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SEBI ban on PW may hit audit of 77 firms, including Tata Steel, Hindalco
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