Muted outlook on loan growth; credit cost volatility continues

Company
23 Oct 2024
5 Min read 
  • Mahindra & Mahindra Financials (MMFS) reported a 57% YoY growth in 2QFY25 PAT.
  •  NIM declined by 20bp QoQ to 6.6% and credit costs stood at ~INR7b.
  •  MMFS expects PV disbursements to be weak for the year and overall disbursement growth to remain muted.
  •  The company guided for credit costs to trend lower in 2HFY25.
  •  MMFS trades at 1.5x FY26E P/BV with a favorable risk-reward for a PAT CAGR of ~30% over FY24-FY27E.
  •  The company expects a loan book growth of around ~18% in FY25.
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