MAS Financial Q2 Review — Axis Securities Maintains 'Buy', Sees Green Shoots On Growth, Asset Quality

As the macro environment turns favorable and rejection rates decline, MAS will look to accelerate growth over H2. The ramp-up of the direct distribution channel will be a key growth enabler, facilitating strong growth at better yields, which would offset the impact of higher Opex. A meaningful repricing of borrowings should drive NIMs higher..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.We reiterate our Buy recommendation on Mas Financial Services Ltd. The stock currently trades at 1.7x FY27E BV, and we value the stock at 2.1x FY27E BV to arrive at a target price of Rs 380/share, implying an upside of 25% from the current market price..MAS remains well-positioned to deliver a strong AUM growth driven by a strong distribution network and adequate capitalisation. We factor in improved growth and better margins, driving better net interest income of 1-2% over FY27-28E, though we cut our FY26 NII estimates, factoring in slower growth and pressure on net interest margins (calc.) in H1. Scaling up of the direct distribution should keep Opex ratios higher. Receding asset quality concerns should result in credit costs gravitating to normalized levels of 1.5-1.6% over the medium term. We trim our earnings estimates by ~2% factoring in higher Opex and marginally higher credit costs. However, considering improving efficiency and normalized credit costs, we raise our Eps estimates by 2-3% over FY27-28E. We expect MAS to deliver a strong 23/24/25% CAGR growth in AUM/NII/earnings over FY26-28E..Click on the attachment to read the full report:.GSK Pharma Q2 Review— Temporary Hiccups Lead To Muted Show On A YoY Basis; Motilal Oswal Maintains Neutral .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MAS Financial Q2 Review — Axis Securities Maintains 'Buy', Sees Green Shoots On Growth, Asset Quality

Axis Securities maintains 'Buy' call on MAS Financial shares, sees upo 25% upside.

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