• Notification Date: 20-02-2025
• Notification No: N/A

MMFS Stock Picks Up Pace with Strong Performance and Focus on Growth Strategies

Mahindra and Mahindra Financial Services (MMFS) stock price increased 7% ever since the third-quarter figures were announced on January 28.
The rise took place against unstable market conditions with the BSE Sensex and Financial Services rising 1% and 3%, respectively.
MMFS was reassuring to the investors as it provided strong guidance on credit cost and net interest margin, thereby instilling more confidence in the markets.

Mahindra Group's fee income-based business and EV financing non-banking finance business of Mahindra Group is growth-focused.
The estimates of the FY25 earnings of the company by the analysts have been revised upwards by more than 20%.
MMFS has rural and semi-urban customer bases, and the financing portfolio comprises commercial vehicles, passenger vehicles, construction equipment, etc.
The loan book of the company increased 19.5% to ?1.11 lakh crore, and the company is targeting a medium-to-high teen loan growth in FY26.

Revenue increased 20% to ?11,830 crore, and net profit increased 56% to ?1,792 crore, with the help of a write-back of provisions.
MMFS, though short of meeting a goal to boost fee-based income, is hopeful about future growth.

Motilal Oswal Financial Services has an estimated FY27 net profit CAGR of 29% and suggests a "buy" at a price target of ?335 with good risk-reward potential.