Mahindra & Mahindra Financial Services recorded a 75 percent on-year growth in disbursements in August, boosting the stock to a 52-week high of Rs 217 on the NSE.
“On the back of positive macro environment, business continued its momentum with disbursement of approximately Rs 3,740 crore,” the company informed in an exchange filing.
The year-to-date disbursement stands at approximately Rs 17,150 crore, registering a on-year growth of 104 percent. “This has resulted in a year-on-year growth of 12 percent and sequential month-on-month growth of 3 percent in gross business assets,” the company said.
The collection efficiency saw a marginal decline, coming in at 96 percent for August as against 97 percent for August 2021. However, the company expects improvement in Stage 2 and Stage 3 assets during September, and enjoys a liquidity chest of over three months.
M&M Finance is among the top performing NBFC stocks this year. The stock has given 41 percent return in 2022 so far. It gained over 3.5 percent in trade on September 5, quoting at Rs 216.
Morgan Stanley has an Overweight rating on the stock with target price at Rs 225. The company’s Stage 2 loans declined QoQ while Stage 3 loans remained stable, observed the brokerage firm. Bank of America Securities also has a Buy rating on the stock on the back of strong medium term (FY25) guidance of 2x AUM growth.