A director at Mahindra & Mahindra Financial Services Limited sold 12,000 shares at 304.000INR and the significance rating of the trade was 59/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors...
MMFS reported a PAT of INR2.23b in 1QFY23 (40% miss), led by elevated operating expenses (cost-income ratio of ~40%) and higher credit costs of INR6.5b (including write-offs of INR5.7b) Business assets at ~INR677b grew 4% QoQ/ 7% YoY. Disbursements rose 3% QoQ/145% YoY to ~INR94.7b. Management expects healthy disbursement growth supported by improving inventory levels, overall price increase of OEMs and strong demand. We believe that MMFS will benefit from its parent Mahindra & Mahindra (M&M...
The independent financial analyst theScreener just upgraded the general evaluation of MAHA.& MAHA.FINL.SVS. (IN), a company active in the Consumer Finance industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date April 5, 2022, the closing price was INR 170.45 an...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 result highlights MMFS’ PAT of Rs3.7bn grew 15% yoy and 45% qoq and was in line with the consensus estimate of Rs3.4bn. PBT contains two one-time charges 1) Rs940M of additional provisions on existing NPLs where chances of recovery are inferior to others 2) Rs350M of indirect tax charges (under dispute) through the opex line. Ex these two charges, PAT would be higher than consensus. Core profit was better than expected as NIMs improved qoq and opex was contained. Disbursals remained u...
Mahindra & Mahindra Financial: Business growth continues to moderate (MMFS IN, Mkt Cap USD3.1b, CMP INR352, TP INR420, 19% Upside, Buy) MMFS reported 3QFY20 PAT of INR3.7b (+15% YoY) – a 6% miss. Better-than-expected margins (NII beat of 6%) and opex performance (4% beat) led to PPoP beat of 13%. However, contingency provision (for customers who have a prolonged default history) of INR940m led to a PBT miss of 4%. Adjusted for the same, the PBT beat was 14%. Other highlights: (a) Loans w...
Q2FY20 result highlights MMFS’ PAT of Rs2.6bn was lower than our estimate of Rs3bn driven by higher credit cost. PAT was higher than Rs684M qoq but lower than Rs3.8bn yoy. The company provided Rs0.4bn as contingency provisions (for stage 1+2 loans) due to a weak macro environment which explains the higher than expected credit cost. The mark down of DTA resulted in a one-time impact of Rs1.04bn. Disbursals remained under pressure declining 10% yoy against growth of 2.5% in 1Q. AUMs grew 16% y...
Q1FY20 result highlights MMFS reported PAT of Rs684M which is a big miss versus our expectation of Rs3bn. The miss was on account of a sharp increase in credit cost. Credit cost rose sharply to Rs6.2bn in 1Q20 versus 2.9bn in 1Q19 and a write back in 4Q19. Credit cost was higher due to 1) a sharp, sequential rise of 30% in NPLs and 2) change in ECL assumptions. The LGD rose by 200 bps to 29%. While PD declined, the decline was not enough to offset the negative impact of higher LGD resulting ...
MAHINDRA FINANCIAL SERVICES: Higher Opex / credit costs drive a big PAT miss; cut estimates by 15-18% (MMFS IN, Mkt Cap USD2.7b, CMP INR304, TP INR400, 31% Upside, Buy) MMFS reported PAT of INR0.7b, significantly below our estimate of INR3.2b, due to higher-than-expected operating expenses and a sharp jump in provisions. Asset quality: As 1Q is a seasonally weak quarter, the GNPL ratio increased 150bp QoQ to 7.4%. At the same time, MMFS increased its PCR on stage 3 assets by ~600bp to 25...
Q4FY19 result highlights PAT of Rs5.9bn was substantially higher than the consensus estimate of Rs4bn and grew 87% yoy and 84% qoq. The strong beat was on account of a huge write-back of provisions led by strong recoveries, the best in any quarter so far. Gross write-back of provisions was Rs3.1bn while write-offs amounted to Rs1.97bn leading to a net write back of Rs1.1bn against our estimate of a credit charge of Rs1.4bn. While there was a big beat on PAT, PPOP was 5% below our estimate...
Q3FY19 result highlights PAT at Rs3.2bn was 20% below our expectation. It declined 20% yoy and 16% qoq. The miss was on account of a very high tax rate (as tax was paid on income reversals in 2Q) and a sharp increase in opex. AUM growth, NIMs and asset quality were strong. Disbursements grew strongly at 33% yoy and 22% qoq. AUM growth was also strong at 30% yoy and 6% qoq. CV growth was particularly strong at 71% yoy and 20% qoq followed by strong growth in tractors and cars. CV growth has...
Mahindra Financial Services: Stable quarter despite tough environment (MMFS IN, Mkt Cap USD3.6b, CMP INR417, TP INR518, 24% Upside, Buy) MMFS reported PAT of INR3.2b (14% miss), driven by higher-than-expected opex and tax rate. Adjusted for INR500m profit on MIBL stake sale in 3QFY18, PAT declined by 8% YoY. AUM and disbursements remained on a robust growth trajectory. Value of assets financed continued increasing robustly at 24% YoY. However, we note that the base is quite high 4Q onwa...
Q2FY19 result highlights MMFS reported a strong quarter. PAT of Rs3.8bn was substantially higher than the consensus estimate of Rs3bn due to lower than expected credit cost. Strong 43% disbursal growth, 19% AUM growth, dividend from subsidiaries and decline in credit cost were the key positive highlights. GNPA / stage 3 grew at a low 2% qoq. Also number of NPL contracts remained almost flat qoq. Management remains bullish on growth, liquidity and asset quality. On a high base of 2H, disbursa...
Mahindra Financial Services: Strong operating performance; Transition to Ind-AS positive (MMFS IN, Mkt Cap USD4.6b, CMP INR513, TP INR600, 17% Upside, Buy) MMFS reported PAT of INR2.7b (+34% YoY) under Ind-AS. The quarter was marked by robust disbursement and AUM growth, as well as an improvement in margins. Continuing the trend of the prior quarter, value of assets financed grew 35% YoY to INR103b. For the first time since 2012, disbursement growth has been above 30% for two consecutive...
Q4FY18 result highlights MMFS reported a strong quarter. PAT of Rs4.3bn grew 81% yoy and 24% qoq. PAT was lower than our estimate of Rs5bn due to higher opex. Asset quality improved with gross NPLs down 22% qoq to 8.5% from 11.6% in 3Q18. The CEO guided that disbursals would grow 20% yoy in 1HFY19 and 25% in 2HFY19, driven by strong rural cash flows. He guided to NPLs of 7% over the next 4-5 quarters. The CEO does not see any significant pressure on margins from rising rates. The company wil...
Mahindra Financial Services: Strong performance; Business tailwinds drive guidance upgrade (mmfs IN, Mkt Cap USD4.8b, CMP INR507, TP INR600, 18% Upside, Buy) MMFS reported PAT of INR4.2b (5% miss). While net income was in line and provisions were lower than estimated (23% lower), higher one-time gratuity provisions and employee incentive cost led to the PAT miss. Key positives: a) Calculated NIM on AUM expanded 140bp QoQ, led by yield expansion, as MMFS gained market share in used vehicl...
Mahindra Financial Services: Green shoots of growth and asset quality recovery (MMFS IN, Mkt Cap USD4.6b, CMP INR490, TP INR575, 17% Upside, Buy) MMFS reported PAT (adjusted for stake sale gain) of INR2.9b, exceeding our estimate by 17%, driven by net income beat of 6% (helped by lower cost of funds) and lower provisions (INR2b v/s estimate of INR2.2b). During the quarter, the company recorded one-off gains of INR650m (INR500m post tax) on sale of stake in one of the subsidiaries. PAT includ...
​MAHINDRA FINANCIAL SERVICES: On an upward trajectory; Well-equipped for growth; return ratios on an uptrend(MMFS IN, Mkt Cap USD4.4b, CMP INR474, TP INR562, 20% Upside, Buy)We met the management of Mahindra & Mahindra Financial Services (MMFS) and came back encouraged by on-the-ground developments in its markets. Being one of the most widely levered NBFCs to the rural economy, MMFS is witnessing a clear turnaround in both growth and asset quality, with two successive normal monsoons (2016 & 2...
​Mahindra Financial Services: Migrates to 90dpd; targets 9-10% GNPL ratio on 90dpd by end-FY18(MMFS IN, Mkt Cap USD3.5b, CMP INR406, TP INR481, 19% Upside, Buy)Mahindra & Mahindra Financial Services (MMFS) reported strong operating performance. AUM grew 14% YoY to almost reach INR500b, registering the fifth straight quarter of 13-14% AUM growth. Growth was driven primarily by tractors (+14% YoY), pre-owned vehicles (+14% YoY), and SME (+71% YoY).MMFS bit the bullet and migrated its NPL recogni...
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