This NBFC Sector Stock Crashes 11% Today, Buy It For Target Price of 225: Morgan Stanley

Shares of Mahindra & Mahindra Financial Services Ltd crashed 11.15% in early trade today soon after RBI barred it from carrying out any recovery or repossession activity through third party agents with immediate effect till further orders. Check key takeaways below:

Stock Outlook: The current market price of Mahindra & Mahindra Financial Services is Rs 198 apiece at 12:08 pm after a sharp decline of 11:15. The 52-week high is quoted at Rs 235 apiece while the 52-week low is quoted at Rs 127 apiece, respectively.

Market Capitalisation: The company has a market capitalisation of Rs 24,562.33 crore at the time of writing the report.

5-Years Return: The stock has fallen 51% in the last 5 years, 44% in the last 3 years, and gained 8% in the last 1 year.

What Morgan Stanley Says? According to the leading brokerage, investors can buy the shares of Mahindra & Mahindra Financial Services Ltd for a target price of Rs 225 with a potential return of 14%.

RBI's Decision on MMFSL: "The Reserve Bank of India has today...directed Mahindra & Mahindra Financial Services Ltd. (MMFSL), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements," the statement said.

However, the MMFSL, a non-banking finance company, may continue to carry out recovery or repossession activities, through its own employees, the central bank said in a statement.

About the company: Mahindra & Mahindra Financial Services Ltd was incorporated on January 1, 1991 as Maxi Motors Financial Services Limited and received certificate of commencement of business on February 19, 1991. The name was changed to Mahindra & Mahindra Financial Services Limited on November 3, 1992. It is registered with the RBI as an NBFC with effect from September 4, 1998 under Section 45IA of the Reserve Bank of India Act 1934.