Indian shadow lenders rise after strong update from Mahindra's finance arm

Sammaan Capital

04/10/2022 08:40

(.)
    ** Shares of Indian non-banking financial cos up between 2%
and 6% at session high after a monthly update from Mahindra and
Mahindra Financial Services  MMFS.NS  showed strong numbers
        ** Bajaj Finance Ltd  BJFN.NS , LIC Housing Finance Ltd
 LICH.NS , Cholamandalam Investment and Finance Co  CHLA.NS 
advance between 3% and 6.4% 
  
        ** Gains also seen in broader market, with benchmark
Nifty 50 index  .NSEI  up as much as 2.22% to post biggest
intraday pct gain since Aug. 30
  
    ** MMFS late on Monday reported disbursement of around 40.80
bln Indian rupees ($500.5 mln), up 110% yoy, on "macro
tailwinds"  urn:newsml:reuters.com:*:nFWN31414C 
        ** Collection efficiency was at 98% for September vs 96%
in August - MMFS 
  
        ** "Asset quality (for MMFS) was much stronger than our
expectations" - Morgan Stanley analyst
  
        ** "Numbers released...increase our conviction in asset
quality improvement, and thus we view the recent sell-off as a
good entry opportunity" - Morgan Stanley 
  
        ** Shares of other NBFCs Shriram Transport Finance
Company Ltd  SRTR.NS  and Indiabulls Housing Finance Ltd
 INBF.NS  also gain 2.8% and 3.6%, respectively.
  
        ** If gains hold, SRTR set to snap two straight sessions
of losses 
  
 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))