ICICI Securities: M&M Financial Services - Sentiment Turning Positive; Normalisation To Take A While 
An employee of Muthoot Finance Ltd., one of India’s leading providers of gold-based loans, counts Indian one hundred rupee banknotes in a branch in New New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

ICICI Securities: M&M Financial Services - Sentiment Turning Positive; Normalisation To Take A While 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Mahindra and Mahindra Financial Services Ltd.’s Q2 FY21 earnings beat was buoyed by lower than anticipated credit cost and gross non-performing loans contracting 220 basis points to 7%.

Some indicators of future stress are -- 13% of 75% moratorium pool has not been honoured even with a single instalment, 7.2% stage-two loans, 0.5% standstill NPLs, 82% September collection efficiency and estimated 8% restructuring -- all of which suggest improving trends but with the travails far from over.

With 2.2% existing contingency buffer, we expect 4% credit cost and 11% stage-three assets for FY21E.

Click on the attachment to read the full report:

ICICI Securities M&M Financial Services Q2FY21 Results Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.