Shares of non-banking lender Mahindra and Mahindra Financial Services surged over 12% on Monday with the stock touching as high as Rs 331 intraday. This comes at the back of Q4 earnings declared by the company on Friday.
Mahindra and Mahindra Financial Services on Friday reported a profit after tax (PAT) for the quarter jumped 55% to Rs 873 crore. The company's bottom-line advanced to Rs 873 crore from Rs 563.14 crore in the year-ago period.
M&M Fin Chief Executive and Managing Director Raul Rebello said the handsome growth in profit was a result of a multitude of factors on the operation front put in by the company, and not because of low base. He said that the high profit growth was due to factors like keeping funding costs under control, which expanded the net interest margin by 1% to 7.5%, a higher asset growth at 12%, doubling of fee income, and also tighter controls over operating costs and credit costs, he said.
Rebello said given the current economic climate, where the Middle East conflict is set to impact activity, the lender has set aside Rs 217 crore as a provision for any possible reverses. He said this should not be construed as sign of troubles brewing and stressed that the collection efficiencies of Mahindra Finance are unaffected.
Mahindra and Mahindra Financial Services Share Price Today
Mahindra and Mahindra Financial Services Share Price Today
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The scrip rose as much as 12.43% to Rs 316.50 apiece intraday on Monday at 11:11 a.m. This compares to a 0.61% rise in the NSE Nifty 50 Index.
It has risen 26.02% in the last 12 months and fallen 20.54% year-to-date. Total traded volume so far in the day stood at 2.34 times its 30-day average.
Out of 38 analysts tracking the company, 25 maintain a 'buy' rating, 11 maintain a "hold", and two maintain a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 356.74 implies an upside of 12.6%
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