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By Malvika Gurung
Investing.com — Shares of the rural non-banking financial company Mahindra and Mahindra (NS:) Financial Services (NS:) slid 4.12% on Tuesday to Rs 231.1 apiece after hitting a fresh 52-week high of Rs 247 apiece earlier in the session.
The stock took positive cues and jumped to a new 52-week high on Tuesday after the company announced an 80% YoY jump in disbursements to Rs 14,450 crore in Q3 FY23 and a 67% YoY surge to Rs 4,650 crore in Dec 2022.
However, the financial stock slid almost 4% in the day following a bearish coverage from the global brokerage Jefferies (NYSE:).
Jefferies retained an underperform rating on the stock on Jan 3, 2023, with a target price of Rs 175/share, which is a downside of 25% from its current share price.
M&M Finance’s business assets advanced approximately by 4.3% sequentially in the Dec quarter and 18.5% from the March quarter to Rs 77,000 crore, led by healthy disbursement trends.
While the global brokerage’s disbursement witnessed a healthy growth of 22% QoQ, its business assets rose 20% YoY in Q3, which was softer than estimated.
The NBFC’s disbursement surged 67% YoY to Rs 4,650 crores in Dec 2022, aided by a positive macro environment, while Collection Efficiency (CE) stood at 98% in the month, compared to 95% in the year-ago month.
The financial company’s Stage-3 and Stage-2 assets witnessed a sequential improvement in Dec as well as the Dec quarter, with Stage 3 assets expected at approximately 6.2% and Stage 2 assets at 8.5% as of Dec 31, 2022.
Read Also: M&M Financial’s Disbursement Jumps 95% YTD, Up 80% in Q3
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