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.