Shares of Mahindra & Mahindra Financial Services Ltd. hit a 40-month high after its net profit jumped in the fourth quarter.
Mahindra Finance's net profit rose 13.87% year-on-year to Rs 684 crore for the March quarter on a standalone basis, buoyed by healthy loan sales and the resultant increase in net interest income.
The company said its disbursement grew 50% to Rs 13,778 crore during the quarter, taking the loan book to Rs 82,770 crore, which clipped at 27% across 10 lakh new loan contracts. For the full year FY23, disbursements rose 80% to Rs 49,541 crore.
Mahindra & Mahindra Financial Services Q4
Net profit is up 13.87% at Rs 684.12 crore.
Gross non-performing assets ratio at 4.49% vs. 5.93%.
Net non-performing assets ratio at 1.87% vs. 2.52%.
The company recommended a dividend of Rs 6 for the financial year ended March 31, 2023. The board has approved an increase in aggregate borrowing limits from Rs 90,000 crore to Rs 1.10 lakh crore.
Shares of Mahindra & Mahindra Financial Services Ltd. gained 5.29% to Rs 272.7 apiece, compared to a 0.57% advance in the benchmark NSE Nifty 50 as of 10:16 a.m. on Tuesday.
The stock rose as much as 7.34% intraday, the most in over 12 weeks since Feb. 6, 2023. The stock breached its 40-year high to rise to Rs 278 apiece intraday, the most in over three years since January 2020.
The total traded volume so far in the day stood at 10.4 times its 30-day average. The relative strength index was at 70.5, implying that the stock may be overbought.
Out of the 36 analysts tracking the company, 24 maintain a 'buy' rating, 10 recommend a 'hold,' and two suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 5.8%.
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