M&M Finance's June disbursement rises 3%; what should investors do?
Morgan Stanley maintained an 'equalweight' rating on the stock and raised the target to Rs 300 from Rs 280. Meanwhile, Jefferies continued with 'hold' and gave a target of Rs 294.
M&M Financial Services shares declined on Wednesday (July 3) in the morning deals after announcing its June update on Tuesday after market hours.
At around 9:56 a.m., shares of M&M Finance were down 0.89 per cent on BSE at Rs 299.5.
In the regulatory filing, the NBFC expects an overall disbursement of approximately Rs 4,370 crore, which implies a three per cent year-on-year (YoY) growth in June.
As per the company, Q1FY25 disbursement is likely at about Rs 12,730 crore, a five per cent growth YoY.
Further, as per the filing, business assets grew approximately by four per cent at Rs 1,06,200 crore over March 2024 and 22 per cent over June 2023.
Moreover, the Collection Efficiency (CE) was at 95 per cent for June 2024 against 96 per cent a year ago.
For Q1FY25, the CE is estimated at 94 per cent. Meanwhile, the company continued to enjoy a comfortable liquidity position on its balance sheet, with a liquidity chest of over Rs. 8,000 crore.
What should investors do?
Morgan Stanley maintained an 'equalweight' rating on the stock and raised the target to Rs 300 from Rs 280. Meanwhile, Jefferies continued with 'hold' and gave a target of Rs 294.
Citi maintained a 'neutral' rating and gave a target of Rs 310. As per the report, June disbursements/business assets growth are broadly in line with estimates.
"We bake-in credit cost of nearly 2.4 per cent for Q1 and estimate RoA of 1.5 per cent net interest margins (NIM) are anticipated to moderate," said Citi.
Similarly, Nomura maintained an 'underperform' rating and gave a target of Rs 240.
M&M Finance share price: Past performance
In a year, shares of M&M Finance declined over 12 per cent against Nifty50's rise of over 24 per cent.
In five years, shares of M&M Finance have given over 24 per cent returns against Nifty50's rise of 104 per cent.
Catch all the updates of the July 3 session on Dalal Street here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.
DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
PPF Interest Calculator: Is it possible to get Rs 60,000 income a month through Public Provident Fund? Know its possibility
Compound Return Benefits: Can Rs 4 crore retirement corpus be created with Rs 9.55 lakh one-time investment? Know how it is possible
09:56 AM IST