India's Mahindra and Mahindra Financial slumps after Q2 profit miss

ICICI Securities

23/10/2024 05:56

** Shares of Mahindra and Mahindra Financial Services Ltd
 MMFS.NS  fall as much as 8% to 259.20 rupees
    ** NBFC reported a 57% rise in Q2 profit to 3.69 bln rupees
($43.9 mln), but missed analysts' estimate of 4.82 bln rupees,
according to data compiled by LSEG
    ** Jefferies blames profit miss on higher provision, net
interest margin was dissapointing due to loan mix shifts and
trade advances to dealers before festive season; retains "Hold"
and 315 rupees PT
    ** Emkay reiterates "Buy" and TP of 360 rupees; rise in
credit cost reflecting seasonality in co's business, owing to
rural self-employed customer segment
    ** ICICI Securities expects credit cost to improve
materially in H2FY25; maintains "ADD" rating, lowers TP to 320
rupees from 330 rupees
    ** Mean rating of 33 analysts is "hold"; their median PT is
312.50 rupees - LSEG data
    ** MMFS last down 4%, adding to YTD losses of 2.3%, vs 23%
gain in Nifty midcap 100 index  .NIFMDCP100  


($1 = 84.0650 Indian rupees)

 (Reporting by Meenakshi Maidas in Bengaluru)
 ((meenakshi.maidas@thomsonreuters.com;))