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M&M Financial Services - Current Valuations Attractive; Risk-Reward Favorable: Motilal Oswal

M&M Financial Services - Current Valuations Attractive; Risk-Reward Favorable: Motilal Oswal

Indian two thousand rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
Indian two thousand rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

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.

Motilal Oswal Report

Key takeaways from Mahindra and Mahindra Financial Services Ltd.’ pre-quarterly release:

  • Mahindra Finance reported December 2021 disbursements of Rs 27.5 billion (up 42% YoY). The company’s Q3 FY22 disbursements stood at Rs 79.8 billion (up 27% YoY/23% QoQ). Its nine months-FY22 disbursements rose 41% YoY to Rs 183 billion.

  • The company’s Q3 FY22 collection efficiency declined 300 basis points QoQ but improved 700 bp YoY. Collection efficiency improved to 100% in Dec-21 from 94% in November 2021. Its collection efficiency stood at 95% in Q3 FY22 (versus 98% QoQ and 88% YoY).

  • Mahindra Finance reported a month-on-month reduction in both stage-II and stage-III in Dec-21. This reduction was after two consecutive months, wherein the stage-III either remained rangebound or stable. The company reiterated that it will bring the net stage-III below 4% by March 2022.

Click on the attachment to read the full report:

Motilal Oswal Mahindra Finance Company Update.pdf

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