India's Mahindra Finance drops after first profit fall in a year

Mahindra and Mahindra Financial Services

23/04/2025 07:30

** Mahindra and Mahindra Financial Services MMFS.NS drops 3.7% to 267 rupees

** Non-bank lender reports 9% y/y drop in Q4 profit on higher credit costs, loan write-offs

** Co posts first profit drop in four quarters

** Nomura ("reduce"; PT of 230 rupees) expects credit costs (as a percentage of assets) to remain at 1.8%-1.9%, above co's estimate of 1.3%-1.7%

** Highlights "sub-par profitability profile"

** Kotak flags risk to growth from slowing vehicle sales; vehicular loans form 90% of co's loan book

** At least three analysts lower PT; mean PT drops to 292.12 rupees from 299 rupees last month

** Stock rated "hold" on avg vs Shriram Finance's SHMF.NS "buy", per data compiled by LSEG

** YTD, MMFS down 2%, trailing SHMF's 21% gain

 (Reporting by Nandan Mandayam in Bengaluru)

 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))