This Midcap Mahindra Stock Soars 85% In 1 Yr, Trading Near 52 Week high, Sharekhan Says Buy

Leading Broking Firm Sharekhan has placed a "Buy" on Mahindra & Mahindra Financial Services Ltd. (MMFSL) with a target price of Rs 290/share. Sharkhan, with the given target price, claims a potential upside of up to 14% from its current market price. MMFSL is Mahindra & Mahindra Group's midcap stock operating in the Financial Sector as a Non-Banking Financial Company (NBFC). It has a market capitalisation of Rs 31,654.28 crore. Check below to know key takeaways about the stock:

MMFSL Stock Outlook & Performance Over The Years

On BSE, the stock of MMFSL last traded at Rs 256.20/share. The stock is trading 5.81% down its 52 week high of Rs 272/share and 100.23% up its 52 week low of Rs 127.95/share.
In the past 1 week, the stock has gained 1.69%, however, it has fallen 2.16% in 1 month. It gained 6.88% in 3 months and 16.56% in 6 months, respectively. It has gained 84.98% in 1 year. However, it has fallen 23.81% in 3 years and 40.88% in 5 years, respectively.

Sharekhan maintain Buy on MMFSL with an unchanged PT of Rs. 290/share

In the report, Sharekhan stated, "MMFSL continued to report healthy business momentum, exhibiting strong underlying demand. Asset-quality metrics are expected to improve further on account of strong collection efficiency. Additionally, the company is diversifying its growth engines and increasing its non-vehicle financing share in SME, LAP, and digital segments. We believe the earnings trajectory is going to positively surprise going forward, led by healthy business growth and benign credit cost. At the CMP, MMFSL trades at 1.7x and 1.4x its FY2024E and FY2025E ABV, respectively."

Key Risks

According to Sharekhan, the Key Risks to the "Buy" would be, "Economic slowdown leading to slower AUM growth, higher-than-expected margin compression, and higher-than-anticipated credit cost."

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. 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.