Latest news with #M&MFinancial
&w=3840&q=100)
Business Standard
23-07-2025
- Business
- Business Standard
M&M Financial share drops 3% on mixed Q1 nos; should you buy, sell or hold?
Mahindra & Mahindra Financial Services share price: Mahindra & Mahindra Financial Services share price was in focus on Wednesday, July 23, 2025, with the scrip dropping up to 2.93 per cent to an intraday low of 257.80 per share, nearing its 52-week low of 235.47. At 9:20 AM, Mahindra & Mahindra Financial Services share was trading 1.75 per cent lower at 260.95. In comparison, BSE Sensex was up 0.30 per cent at 82,429.66 levels M&M Financial Q1 results Mahindra & Mahindra Financial Services (MMFS) reported a modest 3 per cent year-on-year (Y-o-Y) rise in net profit to ₹530 crore for the quarter ended June 2025 (Q1FY26). However, on a sequential basis, net profit declined 6 per cent. Total income for the quarter increased 18 per cent Y-o-Y to ₹4,438 crore, while total expenses rose at a faster pace of 22 per cent to ₹3,744 crore. Net interest income (NII) grew 18 per cent Y-o-Y to ₹2,285 crore. However, credit costs spiked to ₹660 crore from ₹448 crore in the same period last year. Disbursements for the quarter came in at ₹12,808 crore, registering a 1 per cent Y-o-Y rise but falling 18 per cent sequentially. The company attributed the sequential dip to a slowdown in the underlying wheels business. The gross loan book expanded 15 per cent Y-o-Y to ₹1.22 trillion and grew 2 per cent quarter-on-quarter. Its MSME asset book grew 28 per cent Y-o-Y to ₹6,523 crore as of June 30, 2025, led by secured products like Loan Against Property (LAP), which now forms 44 per cent of total SME assets, up from 33 per cent last year. Stage 3 assets in this segment stood at 1.4 per cent, reflecting strong asset quality. Collection efficiency improved slightly to 95 per cent, up from 94 per cent in Q1FY25. Brokerages' view Motilal Oswal The company reported an operationally soft quarter with tepid disbursements and loan growth, according to analysts at Motilal Oswal. Asset quality weakened seasonally due to elevated credit costs, higher slippages, and persistent write-offs. On the positive side, net interest margin (NIM) expanded about 10 bps Q-o-Q, and management remains confident that NIM has bottomed out and is poised to improve. While loan growth and credit costs remain uncertain, a projected PAT CAGR of about 21 per cent over FY25–27 and RoA/RoE of 2.2 per cent/13 per cent in FY27E support a 'Buy' rating with a target price of ₹310 (1.6x Mar'27E BV). The M&M Financial stock is currently trading at 1.3x FY27E P/BV. Nuvama Those at Nuvama said, M&M Financial beat estimates on NII and pre-provision operating profit (PPOP), but missed on credit costs, which came in at 1.9 per cent – above the guided 1.5-1.7 per cent range. Still, given a tough operating environment and stable Stage 3 ECL at 51.4 per cent, the outcome is seen as acceptable. Disbursements remained weak (up 1 per cent Y-o-Y / down 18 per cent Q-o-Q). Reported spread improved 20 bps Q-o-Q, and PPOP rose 19 per cent Y-o-Y / 11 per cent Q-o-Q. PAT grew 3 per cent Y-o-Y but declined 6 per cent sequentially. Stage 2+3 ECL remained steady at 78.8 per cent versus 78.4 per cent Q-o-Q. Thus, analysts at Nuvama maintained a 'Hold' rating with a target price of ₹280 (1.6x FY26E BV), with growth momentum and credit cost normalisation as key monitorables.
&w=3840&q=100)
Business Standard
23-04-2025
- Business
- Business Standard
Why did M&M Financial slip 4% post Q4 results? Here's what brokerages say
M&M Financial Services stock price today: Shares of M&M Financial Services fell over 4 per cent to hit an intraday low of ₹265.20 on Wednesday after the company reported a disappointing set of numbers for March 2025 quarter (Q4FY25) results. At 12:40 PM on Wednesday, M&M Financial's stock was quoting at ₹268.90, down 2.98 per cent on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 24,218.35, up 51.10 points or 0.21 per cent. The stock has fallen nearly 23 per cent from its 52-week high of ₹343 touched on September 27, 2024. The non-banking financial services company's total market capitalisation stood at ₹33,223.40.66 crore. M&M Financial Services Q4FY25 result update The company's reported total income of ₹4,245 crore for Q4FY25, up 15 per cent compared to ₹3,706 crore in the year-ago period. Net interest income (NII) grew 9 per cent Y-o-Y to ₹2,156 crore from ₹1,971 crore in the corresponding quarter last fiscal. However, net interest margins (NIMs) decline from 7.1 per cent in Q4FY24 to 6.5 per cent in Q4FY25. The company's profit after tax (PAT) came in at ₹619 crore in Q4FY25, down 9 per cent from ₹563 crore in the March 2024 quarter. Brokerage views on M&M Financial Services Motilal Oswal Financial Services (MOFSL) M&M Financial Services delivered a soft quarter with tepid disbursements resulting in muted growth in assets under management (AUM). Net interest margins (NIMs) also decline on a sequential basis due to moderation in yields. On the asset quality front, there was no improvement despite Q4 being a seasonally strong quarter, while write-offs and loan losses remain elevated, MOFSL said in a note. ALSO READ | "The outlook on loan growth and credit costs remains uncertain, with more clarity expected only at the end of Q1FY26. We believe this will be the true acid test for vehicle financiers," the brokerage added. Elara Capital M&M Financial Services' Q4 earnings disappointed on several counts including a sharp increase in the provision and elevated operational expenses (opex) that affected the bottomline. Margins suffered on the back of elevated funding costs and a rejig in loan management systems, said Elara Capital in a research note. The subdued performance is expected to continue amidst weak demand for automobiles due to macroeconomic headwinds. Management expects tractors and non-wheels to drive growth, with contribution from non-wheels estimated to increase from the current 7 per cent to 25 per cent in future. Emkay Global on M&M Financial Services M&M Financial reported muted growth and profitability in the March 2025 quarter, with key figures largely in line with estimates. However, PAT was 5 per cent below the consensus estimates. Despite the continuous efforts by the management to diversify into other verticals, the company remained dominated by wheels at around 93 per cent. This is expected to restrict growth in the near-term as the newer segments are still too small to drive AUM growth. ALSO READ | "Ahead, a sticky opex and marginal normalization in credit cost from the current superior levels are likely to limit scope for improvement in return on assets (RoA), driven by NIM and fee expansion on account of increasing fee yield and moderating cost of funds (CoFs)," the brokerage said in a note. About M&M Financial Services Mahindra & Mahindra Financial Services, a part of the Mahindra Group, is a non-banking financial services company (NBFC) primarily engaged in the business of financing the purchase of new and pre-owned auto and utility vehicles, construction equipment and SME Financing. It is the only Indian NBFC to be listed on the Dow Jones Sustainability Index for Emerging Markets. The company's subsidiaries include Mahindra Insurance Brokers and Mahindra Rural Housing Finance.
