Now Reading: MMFSL shares crash 10%, brokerages keep positive ratings
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MMFSL shares crash 10%, brokerages keep positive ratings
The Story in Brief
Shares of Mahindra & Mahindra Financial Services (MMFSL) fell as much as 10 per cent to Rs 368 on the BSE on Thursday, 22 October, after the company reported mixed second-quarter results. The stock was the top loser on the Nifty 500 index despite a 55 per cent year-on-year rise in consolidated profit after tax to Rs 882 crore, driven by higher fee income and lower credit costs. Net interest margins declined 30 basis points due to higher liquidity buffers and seasonal trade advances, while disbursements rose 22 per cent and assets under management grew 15 per cent.
Most brokerages retained positive ratings despite the sell-off. CLSA has an 'outperform' rating with a target of Rs 405, implying a 35.9 per cent upside. Citi has a 'buy' with Rs 420, Nomura a 'buy' with Rs 400 and HSBC a 'buy' with Rs 340. Investec suggested 'buy' at Rs 425, UBS 'neutral' at Rs 330, and Jefferies, Morgan Stanley and JPMorgan set targets between Rs 330 and Rs 347. The management reiterated its medium-term guidance of 16 to 18 per cent AUM growth and 2.2 to 2.5 per cent return on assets by FY31, but cautioned that current PAT growth is unsustainable. Rising cost of funds, proposed insurance commission cuts and drought-led tractor stress were flagged as key monitorables.
Indian Opinion Analysis
All three sources lead with the 10% stock fall and report broadly similar facts: brokerages retain positive ratings even after target-price cuts, and management flags rising funding costs, insurance commission cuts and drought-led tractor stress as monitorables. Business Today reprints brokerage notes at length without editorial framing. CNBC-TV18 leads with the price drop but immediately centres analyst upside targets, closing with Citi's 40% upside view. The Economic Times strikes a middle ground, reporting both the plunge and the Q2 profit rise, then dedicating most of its space to Nomura's caution on tractor asset quality and a projected credit-cost increase through FY27. The differences are one of emphasis: Business Today and CNBC-TV18 foreground the positive analyst sentiment that tempers the sell-off, the Economic Times foregrounds the specific risk factor of rising credit costs.
Coverage: 3 sources, 3 neutral
Sources (3): businesstoday.in (neutral report), cnbctv18.com (neutral report), economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Update, 22 October 2026: this story now draws on 3 sources.
