Mahindra Finance Q4 Results Review - NIMs Improved QoQ; RoA Guidance Lowered To 2.2% FY25: IDBI Capital

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Mahindra and Mahindra Financial Services Ltd. assets under management growth remains strong at 24% YoY versus 25.5% (Q3 FY24); we expect 17% compound annual growth rate (FY24-26) AUM growth. Further, reported improvement in net interest margins led by increase in yields. Management maintained the guidance of NIMs at 7% for FY25. Asset quality improved with GS3 at 3.4% versus 4.0% QoQ backed by higher write offs. Net interest income grew by 8% QoQ led by improvement in NIMs. Pre-provision operating profit grew by 10% QoQ led by lower opex (up 6%QoQ). However, PAT declined by 10% YoY led by one-time hit of Rs 1.35 billion for fraud related provision. Management revised guidance to 2.2% versus ~2.5% return on assets for FY25 (achieved 1.7% FY24). We have revised estimates slightly downwards for FY25E (- 4.5% earnings per share). We maintain ‘Buy’ on Mahindra Finance with target price of Rs 325 (earlier Rs 345), valuing it at 1.9 times (versus earlier two times price/adjusted book value) FY26E ABV as NIM improvement need to be seen..Click on the attachment to read the full report: .Mahindra Finance Q4 Results Review - Process Enhancements To Help Recover From Fraud Setback: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Mahindra Finance Q4 Results Review - NIMs Improved QoQ; RoA Guidance Lowered To 2.2% FY25: IDBI Capital

AUM growth remains strong at 24% YoY as against 25.5% YoY (Q3 FY24) led by 13% YoY growth in FY24 disbursements.

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Mahindra Finance Q4 Results Review - NIMs Improved QoQ; RoA Guidance Lowered To 2.2% FY25: IDBI Capital

AUM growth remains strong at 24% YoY as against 25.5% YoY (Q3 FY24) led by 13% YoY growth in FY24 disbursements.

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