Mahindra & Mahindra Financial Services Ltd. witnessed a 4.46 percent surge in shares on Thursday, May 04, following an impressive Q4 result. The company reported a 14% YoY increase in standalone net profit, reaching Rs. 684 crore as opposed to Rs. 601 crore in the year-ago quarter.
During Thursday’s trade, the stock opened at a price of Rs. 272.50 per share against the previous close of Rs. 271.50 per share and grew further during the early trading session to touch a 52-week high of Rs. 283.60.
It was trading at ₹283.30 apiece, up by 4.42 percent, at 11:30 a.m. on the NSE.
The stock touched a 52-week low of Rs. 160.60 on May 26, 2022, indicating that at the current price, the stock is trading over 76 percent above that level.
The stock has grown over 18 percent in the last one month. Moreover, in the last six months, it has yielded a return of nearly 30 percent. In the past five years, it has gained almost 57 percent.
The company reported a positive performance in Q4FY23, with an improvement in gross non performing assets from 5.9% to 4.5% supported by focused collection initiatives and macro tailwinds.
Net interest income increased by 10% YoY to ₹1,660 crore compared to the previous year's quarter of ₹1,507 crore. The net sales for March 2023 stood at ₹3,462.69 crore, up 20.86% from ₹2,865.08 crore in March 2022.
The EBITDA rose to ₹2,463.85 crore in March 2023, up 25.39% from ₹1,964.97 crore in March 2022.
Furthermore, the company's earnings per share (EPS) increased to ₹5.52 in March 2023 from ₹5.06 in March 2022.
The board of the company has recommended a dividend payout of ₹6 per equity share, with a face value of ₹2 each or 300 percent, for the financial year that ended March 31, 2023.
Mahindra and Mahindra Financial Services has received mixed ratings from various brokerage houses. Sharekhan has recommended a ‘buy’ rating on the stock with a target price of ₹315, while Motilal Oswal is bullish on the company and also recommended a ‘buy’ rating with a target price of ₹320.
On the other hand, Emkay Global Financial and Prabhudas Lilladher have recommended a ‘hold’ rating with a target price of ₹270 and ₹280 respectively.
Founded in 1991, Mahindra & Mahindra Financial Services Ltd. is a large-cap business with a market valuation of Rs. 34,892.80 crore that operates in the NBFC sector. This Mumbai-based company is one of India's major tractor financiers.
According to a MintGenie poll, 33 analysts on an average have a ‘BUY’ call on the stock.