Shares of Mahindra & Mahindra Financial Services Ltd. plunged over 14% on Monday after its second-quarter profit missed analysts' estimates.
The non-banking finance company's standalone net profit fell 48% year-on-year to Rs 235.2 crore for the quarter ended September, according to an exchange filing. Analysts polled by Bloomberg estimated a standalone net profit of Rs 483.1 crore.
M&M Financial Services Q2 FY24 Highlights (Standalone, YoY)
Total income up 24% at Rs 3,240.5 crore. (YoY)
Net profit down 48% at Rs 235.2 crore. (Bloomberg estimate: Rs 483.1 crore). (YoY)
Gross stage-3 assets at 4.29% vs 6.70% (QoQ)
Net stage-3 assets at 1.71% vs 1.78% (QoQ)
Shares of Mahindra Finance fell as much as 14.41% during the day to Rs 237.35 apiece. The shares were trading 10.64% lower at Rs 247.80 apiece, compared to a 0.04% decline in the benchmark NSE Nifty 50 at 10:21 a.m.
It has risen 5.9% on a year-to-date basis. The total traded volume so far in the day stood at 16 times its 30-day average. The relative strength index was at 24, implying that the stock maybe oversold.
Twenty-one out of the 40 analysts tracking Mahindra Finance maintain a 'buy' rating on the stock, 13 recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 21.9%.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.