Stay 'Neutral' On M&M Finance Maintains Centrum Post Q2 Results, Hikes Target Price — Here's Why

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.

Centrum Broking Report

Mahindra and Mahindra Financial Services Ltd. reported a better-than-expected Q2 FY26, with disbursements rising 2.7%/5.5% YoY/QoQ despite the typically soft season. Growth was driven by segments tied to its diversification push, notably SME, while management also highlighted an improving outlook for the mortgage business, which should aid structural broadening.

However, actual delivery on diversification has lagged prior ambitions, and while the stock price has benefited from rural recovery and GST cuts, near-term re-rating depends on sustained execution—particularly consistent return ratios above CoE and steady core-segment momentum.

Given that the stock already trades above its long-term valuation mean, current pricing seems to reflect the favourable macro backdrop.

We maintains a Neutral stance, valuing the standalone business at 1.5× H1 FY28E adjusted book value and revising the SOTP target price to Rs 282 to incorporate marginal earnings revision.

Click on the attachment to read the full report:

DISCLAIMER

This 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.