JP Morgan upgrades India's M&M Financial on easing borrowing costs

Mahindra and Mahindra Financial Services

05/03/2025 09:22

** Easing borrowing costs and pick-up in rural economy bodes well for Mahindra & Mahindra Financial Services MMFS.NS in 2025, JP Morgan says

** MMFS last up 3.9%

** Upgrades co to "overweight" from "underweight"; raises PT to 320 rupees from 235 rupees

** Says MMFS's NIMs likely to benefit from easing borrowing costs

** Adds pick-up in tractor/LCV loans, used-vehicles push could further aid margins in 2025

** Diversification into new segments like mortgages/SME could boost loan disbursements near mid-term, but will keep costs elevated - JP Morgan

** Expects credit costs to increase in FY26/27 vs FY25 but higher collection efficiency and contained write-offs could offset - brokerage

 (Reporting by Aleef Jahan in Bengaluru)

 ((aleefjahan.cs@thomsonreuters.com))