Firstcall Research is bullish on M&M Financial and has recommended buy rating on the stock with a target of Rs 784 in its July 20, 2011 research report.
“Mahindra & Mahindra Financial Services was incorporated in 1991; it is one of the leading non-banking finance companies. Mahindra & Mahindra Financial Services is a subsidiary of Mahindra & Mahindra (M&M). It provides finance for purchase of utility vehicles (UV), tractors and cars. Initially, it financed M&M UVs, tractor and cars but later it started funding vehicle not manufactured by Mahindra & Mahindra. It primarily focused on rural and semi-urban sector. It has largest network of 547 offices spread across India with over 10 lakhs customer contacts. It has tie up with Maruti Udyog to provide retail finance for its vehicles.”
“During the quarter, the company disclosed a consolidated profit of Rs. 1655.32 million as against of Rs.1438.21 million for the quarter ended March 31, 2010. Net sales are increased by 30% to Rs. 6134.40 million from Rs. 4725.63 million in the same quarter previous year. In the same period, consolidated operating profit of the company was at Rs. 4639.27 million, a rise of 33% over the prior year period. Company EPS is stood at Rs.16.16 for the quarter ended March 2011.”
“At the current market price of Rs 694, the stock is trading at 11.71 x FY12E and 10.15 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 59.27 and Rs.68.35respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 25% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 4.55 x for FY12E and 4.48 x for FY13E. Price to Book Value of the stock is expected to be at 2.26 x and 1.85 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 784 for medium to long term investment,” says Firstcall Research report.
“Mahindra & Mahindra Financial Services was incorporated in 1991; it is one of the leading non-banking finance companies. Mahindra & Mahindra Financial Services is a subsidiary of Mahindra & Mahindra (M&M). It provides finance for purchase of utility vehicles (UV), tractors and cars. Initially, it financed M&M UVs, tractor and cars but later it started funding vehicle not manufactured by Mahindra & Mahindra. It primarily focused on rural and semi-urban sector. It has largest network of 547 offices spread across India with over 10 lakhs customer contacts. It has tie up with Maruti Udyog to provide retail finance for its vehicles.”
“During the quarter, the company disclosed a consolidated profit of Rs. 1655.32 million as against of Rs.1438.21 million for the quarter ended March 31, 2010. Net sales are increased by 30% to Rs. 6134.40 million from Rs. 4725.63 million in the same quarter previous year. In the same period, consolidated operating profit of the company was at Rs. 4639.27 million, a rise of 33% over the prior year period. Company EPS is stood at Rs.16.16 for the quarter ended March 2011.”
“At the current market price of Rs 694, the stock is trading at 11.71 x FY12E and 10.15 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY11E and FY12E is seen at Rs 59.27 and Rs.68.35respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 25% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 4.55 x for FY12E and 4.48 x for FY13E. Price to Book Value of the stock is expected to be at 2.26 x and 1.85 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 784 for medium to long term investment,” says Firstcall Research report.
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