Mahindra Finance: Stock Soars 11% In Trade: Asset Quality Improves To Rs. 73,900 crore

The share price of Mahindra Finance surged 11.43% in intra day trade today after the company reported disbursements of around Rs. 4,080 crore in September. This growth has translated to an on-year growth of 82% in Q2, and 106% in H1 FY23.

The company stated, "Healthy disbursement trends during the first half have led to a strong gross asset book of approximately Rs. 73,900 crore, growing 3% month-on-month. As on September 30, the company expects its Gross Stage 3 to be around 7% (compared to 8% as of June 30) and Gross Stage 2 to be around 10% (compared to 11.7% as of June 30). Disbursements and collections remained strong in September, aided by macro tailwinds. Both AUM and asset quality were better than our estimates

Mahindra Finance - NSE performance

The current market price of Mahindra Finance closed at Rs. 200.30/share on NSE, up by 11.43%, on October 4. In the last 5 days, its share price gained by 10.57%, and in 2022, its share price gained by 31.56%. It is a large-cap stock with a market capitalization of Rs. 24,760 crore.

The 52-week high level of this stock is Rs. 235.10, and the 52-week low level of this stock is Rs. 128.

The company's product portfolio consists of vehicle finance, which includes financing of passenger vehicles, utility vehicles, tractors, commercial vehicles, and construction equipment; and pre-owned vehicles and SME finance, which includes project finance, equipment finance, working capital finance and bill discounting services to SMEs. The company also undertakes mutual fund distribution, fixed deposits and personal loans tailor-made to suit its unique customer set. With over 24,000 employees, Mahindra Finance has a presence in every state in India and a footprint in 85% of its districts.

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