Small Cap NBFC Stock Will Trade Ex-Dividend Next Week, "ADD" For 32% Upside, Says HDFC Securities

Leading Brokerage firm HDFC Securities has assigned an "ADD" call on the stock of Mas Financial Services Limited (MAXL) with a target price of Rs 1,035 apiece implying an upside of 32% from the current market price. The stock has recently declared an Interim Dividend of Rs 1.80 per equity share. The stock fixes the record date for the declared dividend. It is a small cap Financial sector stock with a market capitalisation of Rs 4,351.37 crore.

Mas Financial Services Ltd Stock Performance

On NSE, the stock of Mas Financial Services is currently trading at Rs 787.30 apiece, down 0.78% from its previous close. Its previous close was Rs 793.50 apiece, while today it opened at Rs 802 apiece. On November 7, 2022, the stock recorded its 52-week high at Rs 937.95 apiece and on 2 February 2022, it recorded its 52 week low at Rs 468.45 apiece, respectively.

The stock has gained 1.2% in the past 1 week and in the past 1 month, it has fallen 3.51%, respectively. In the past 1 year, it gained 41.52%. The stock has fallen 18.79% in the past 3 years. In the past 5 years, it gained 29.54%.

Mas Financial Services Ltd Declared An Interim Dividend of Rs 1.80

According to Mas Financial Services Ltd's regulatory filing to BSE on February 1, 2023, "Declared Interim Dividend of Rs. 1.80/- (Rupees one and Eighty Paisa only) per Equity share i.e. 18.00% of the face value of Rs 10/-; and In compliance of Regulation 42 of the SEBI (Listing Obligations and Disclose Requirements) Regulations, 2015, the record date for the Interim Dividend is fixed as Saturday, February 11, 2023."

HDFC Securities Recommends "Add"

According to the brokerage, MAXL posted a massive beat on VNB (+44% vs. estimate) at INR3.73bn (+50% YoY) despite a 5% YoY degrowth in total APE, driven by sharp improvement in VNB margins to 39.3% (+795bps QoQ). "While we are reassured by the sharp uptick in the NPAR savings business mix at 56%, management expects this to mean-revert towards 40-45% levels. We flag any further dip in MAXL's wallet share in the AXSB banca channel (Q3FY23: 70%) as a business concern. We tweak our estimates marginally for FY23E-24E to factor in higher margins offset by weak APE growth and expect APE/VNB CAGRs of 12/13% and operating RoEVs in the range of 20-21% over FY23-25E. We retain ADD with a TP of INR1,035 (Sep-24E EV + 12.7x Sep-23E VNB less 10% discount for growth uncertainties)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.