Shares of Mahindra & Mahindra Financial Services Ltd. fell for the second consecutive session on Wednesday after its loan disbursement remained subdued in June 2024.
The company's overall loan disbursement grew 3% year-on-year to an estimated Rs 4,370 crore in June. In May 2024, the company's overall disbursement was slightly higher at approximately Rs 4,430 crore.
The company's first quarter fiscal 2025 disbursement is estimated at Rs 12,730 crore, registering 5% year-on-year growth. The business assets of the NBFC are Rs 1.06 lakh crore, which grew approximately by 4% over March 2024 and by 22% over June 2023.
The collection efficiency was at 95% for June 2024, compared to 96% for June 2023. It is expected to stand at 94% in the first quarter of fiscal 2025.
The company's stage-3 assets are estimated to stand at about 3.6% of total advances, compared to 3.4% as of March 31, 2024. While its stage-2 assets are estimated at around 6.1% of total advancements, against 5% as of March 31, 2024.
The company continued to enjoy a comfortable liquidity position on its balance sheet, with a liquidity chest of over Rs 8,000 crore, the filing said.
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Shares of the company fell as much as 4.58%, the lowest level since June 11, before paring loss to trade 1% lower at Rs 299.60 apiece as of 10:06 a.m. This compares to a 0.7% advance in the NSE Nifty 50.
The stock has risen 8% year-to-date and 0.5% in the last 12 months. Total traded volume so far in the day stood at 0.63 times its 30-day average. The relative strength index was at 56.83.
Out of 38 analysts tracking the company, 19 maintain a 'buy' rating, 10 recommend a 'hold' and nine suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 0.7%.
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