Continues to pivot towards direct retail distribution

Company
29 Jan 2024
5 Min read 
  • MAS Financial Services (MASF) reported 3QFY24 PAT growth of 24% YoY.
  •  The company continues to focus on direct retail distribution and branch expansion.
  •  Standalone AUM grew 27% YoY, with strong growth in micro-enterprise loans and SME loans.
  •  Spreads and NIMs contracted slightly in 3QFY24.
  •  Asset quality remained stable, with a slight increase in GNPA ratio.
  •  MASF plans to raise equity capital and introduce used-car loans as a new product.
  •  The company has a strong liability franchise and is focused on diversifying its liabilities.
  •  Earnings estimates for FY24-FY26 are broadly unchanged.
  •  Valuations are attractive, with a P/B ratio of 2.7x FY26E BV.
  •  Reiterate BUY rating with a revised TP of INR1,160.
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