Motilal Oswal: M&M Financial Q1 Controlled Opex Leads To PPoP Beat; Credit Costs Elevated

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Mahindra & Mahindra Financial Services Q1 FY21 reported profit after tax of Rs 1.6 billion (up 128% YoY; down 29% QoQ), a 3% miss. While pre-provision operating profit beat our estimates by 25%, higher-than-expected provisions at Rs 8.4 billion led to the modest PAT miss.The board approved a 1:1 rights issue at Rs 50 per share, amounting to Rs 30.89 billion as of July 23, 2020 (record date). As per our calculations, while FY21 networth increases approximately 25%, book value per share declines ~35% to Rs 125.Month-on-month improvement in disbursements and collections is encouraging; however, its sustenance is the key monitorable. Within its product mix, tractors, entry-level cars, and LCVs are likely to do well, while medium and heavy commercial vehicle and taxi aggregator are likely to witness slow recovery..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Motilal Oswal: M&M Financial Q1 Controlled Opex Leads To PPoP Beat; Credit Costs Elevated

Motilal Oswal: M&M Financial Q1 Controlled Opex Leads To PPoP Beat; Credit Costs Elevated

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