MAS Financial Q2 Review - Inline Earnings Aided By NIM Expansion Despite Higher Credit Costs: Motilal Oswal

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.MAS Financial Services Ltd. Q2 FY24 profit after tax grew 22% YoY to Rs 600 million (in line). Net total income was up 28% YoY at Rs 1.5 billion (in line), while opex at Rs 484 million grew 16% YoY. Pre-provision operating profit rose 34% YoY to Rs 1.04 billion (in line).Operating expenses increased, with the cost/income ratio growing ~75 basis points QoQ to ~32% and the opex-to-assets under management ratio rising ~15 bp to 2.2%.MAS Financial Services' expenses were mainly driven by the expansion in direct distribution.Credit costs surged 95% YoY stood to Rs 236 million versus our estimate of Rs 190 million.On-book gross non-performing assets rose ~5 bp QoQ to 2.17%. However, net non-performing assets ratio was stable QOQ at 1.47%. Capital adequacy and liquidity on the balance sheet remained healthy. We cut our FY25E earning per share by ~5% to factor in higher credit costs, driven by an improving mix of direct distribution.Retain 'Buy' with a revised target price of Rs 1100 (based on 2.8 times September 25E book value)..Click on the attachment to read the full report:.Ratnamani Metals Shares At Record High After Q2 Profit Beats Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MAS Financial Q2 Review - Inline Earnings Aided By NIM Expansion Despite Higher Credit Costs: Motilal Oswal

Credit costs surged 95% YoY stood to Rs 236 million versus our estimate of Rs 190 million.

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