Mahindra Group NBFC Recommends Rs 6.30 Dividend, Net Slips; Shares Rise 3.25% In 1-Week

Mahindra Group NBFC company, Mahindra & Mahindra Financial Services Ltd on May 4, 2024 declared a fall of 9.5% year-on-year in its net profit for the March 2024 quarter to Rs 619 crore as against Rs 684 crore reported in the corresponding quarter of last year. Its net interest income for the March 2024 quarter declared at Rs 3,706.10 crore, up 21% YoY. The NBFC recommended a dividend of Rs 6.30 per equity share of the face value of Rs 2 each for the financial year 2024.

Last trading price of Mahindra & Mahindra Financial Services share on BSE is Rs 266.95 per share with intraday gain of 0.85%. The company has a market capitalisation of Rs 32,982.47 crore. PE of Mahindra & Mahindra Financial Services stood at 11.83 and ROE is 13.96. M&M Finance share offered return of 47% in last 1-year and fell over 1% in last 1-year. More details below:

M&M Finance Declares Dividend: As per the regulatory filing of the company dated May 4, "Recommendation of dividend of Rs. 6.30 per equity share of face value of Rs. 2 each (i.e. 315%) for the financial year ended 31st March 2024. The dividend payout is subject to the members' approval at the forthcoming 34 th Annual General Meeting ("AGM") of the Company."

M&M Finance Share Performance: The 52-week high price of M&M Finance share on BSE is Rs 346.40 per share (as on 4/7/2023) and 52-week low price is Rs 243.90 per share (as on 30/10/2023), respectively. M&M Finance shares declined 9.62% in last 1-month, fell 2.98% YTD, surged 3.37% in last 6-months, and offered 68% return in last 3-years.

M&M Finance Dividend History: Mahindra & Mahindra Financial Services Ltd. announced 19 dividends since June 12, 2006. In last 1-year, Mahindra & Mahindra Financial Services Ltd. announced an equity dividend amounting to Rs 6.00 per share. At the current share price of Rs 267.1000, Mahindra & Mahindra Financial Services Ltd offers a dividend yield of 2.25%.

Recent Fraud: The Company has appointed a law firm and an accounting firm to undertake a factfinding assessment of the aforesaid suspected irregularities ("Assessment"). Based on the results of the Assessment by the accounting firm and the management, 2887 loan accounts were identified by the Management as potentially fraudulent in nature. These loans had an outstanding net recoverable balance of Rs. 135.9 crores as of 31st March 2024, which have been fully provided, as per the BSE filing.

M&M Finance Shareholding: Promoters holding remains unchanged at 52.16% in March 2024 quarter. FII/FPI have decreased holdings from 12.72% to 11.95% in March 2024 quarter. Number of FII/FPI investors increased from 252 to 254 in March 2024 quarter. Number of MF schemes increased from 22 to 23 in March 2024 quarter. Institutional Investors have increased holdings from 39.68% to 40.56% in March 2024 quarter. Life Insurance Corporation Of India, Lic-P & Gs Fund, Lici Funds has 9.89% stake in the company with 122,229,562 shares of the company, according to Trendlyne.

About: Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 9.3 million customers and has an AUM of over USD 11 Billion. The company is a leading vehicle and tractor financier and also offers other products like Fixed Deposits and SME Loans. The company has over 1,367 offices and reaches out to customers spread over 3,80,000 villages and 7,000 towns across the country. Mahindra Finance is the only Non-Banking Finance Company from India to be listed on the Dow Jones Sustainability Index in the Emerging Market Category 2019, according to its LinkedIn page.

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