M&M Finance Shares Surge Over 5% Post Positive Q3 Results: Buy, Sell, or Hold?

Mahindra & Mahindra Financial Services, a non-banking finance company, has reported a 12% decline in standalone net profit to ₹553 crore for the December quarter of FY24, compared to ₹629 crore in the same period last year. Despite the profit dip, M&M Finance’s shares witnessed a notable jump of over 5% following the upbeat Q3 results.

In Q3FY24, the company’s net interest income (NII) rose by 10% to ₹1,815 crore from ₹1,650 crore YoY, with an 8% growth on a quarterly basis. The net interest margin (NIM) stood at 6.8%, a slight decline from 7.4% YoY but an improvement from 6.5% sequentially.

Quarterly disbursements increased by 7% YoY to ₹15,436 crore, and the collection efficiency for the quarter stood at 95%. M&M Finance also reported an improvement in asset quality, with stage 3 assets at 4.0%, down from 4.3% in September 2023 and 5.9% in December 2022.

Several brokerages have reacted positively to M&M Finance’s Q3 results, with some raising their target prices on the stock. Nuvama Institutional Equities upgraded the stock to ‘Hold’ from ‘Reduce,’ revising EPS estimates and raising the target price to ₹280 per share. JM Financial maintained a ‘Buy’ call, raising the target price to ₹345 per share. Centrum Broking maintained an ‘Add’ rating, increasing the target price to ₹306 per share, while Emkay Global Financial Services reiterated a ‘Reduce’ rating but raised the target price to ₹280 per share.

M&M Finance’s shares have shown resilience, gaining over 18% in the past three months and more than 24% in the last year. As of 10:20 am, M&M Finance share price was trading at ₹290.15 apiece on the BSE, reflecting a 3.64% increase.

Investors are now left to decide whether to buy, sell, or hold M&M Finance shares based on their assessment of the company’s Q3 performance and the recommendations from various brokerages.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​
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