M&M Financial Services - Unwavering Focus On Collections; Growth To Lag, Says ICICI Securities
Mahindra & Mahindra Financial Services’s signage outside one of the company’s branches in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

M&M Financial Services - Unwavering Focus On Collections; Growth To Lag, Says ICICI Securities

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

Based on our interactions with industry and market participants, we could gauge the following trends for Mahindra and Mahindra Financial Services Ltd. -

1. Unwavering focus on collections with targeted weekly and monthly milestones and regular reviews;

2. improved collection efficiency across geographies (Q4 historically being a strong collection quarter);

3. no more refraining from repossession (in real stress cases);

4. actively pursuing upgrades from stage 1/2/3 bucket rather than forward flows (downgrades) to the next bucket.

These suggest cumulative stage two + stage three assets, that went unusually high to 24%, should retrace directionally towards normalisation.

Click on the attachment to read the full report:

ICICI Securities Mahindra Finance Company Update.pdf

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