MAS Financial Services Ltd.'s stock has made significant gains over the last one year because its lower assets under management size enabled faster growth, according to its Chairman and Managing Director Kamlesh Gandhi.
The mid-size financial company's stock is up 40 percent over last year. “The advantage is the size of the AUM (about Rs 5,000 crore) we manage. Had there been one more zero in the size, this percentage of growth would not have been possible,” Gandhi told BloombergQuint in an interview. The company's focus on niche expertise has helped it achieve its growth, he said.
“Over the years, we've honed our niche expertise of micro, small and medium enterprises. This being a very huge market has given us the opportunity to maintain the trajectory of our growth,” said Gandhi.
The company's net interest margin might be depressed over the next couple of quarters, but the profitability wont get impacted much because of moderate contraction, Gandhi said. “We can draw (money) from our balance sheet as and when we require. This will not create a negative pressure on the NIMs.”
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