M&M Financial shares zoom 10% after Q1 profit jumps, brokerages lift target prices

Mahindra & Mahindra Financial Services shares zoomed 10 per cent on Wednesday after the company reported a 70 per cent y-o-y rise in standalone profit after tax to ₹899 crore for Q1, while brokerages remained positive on the stock.

The stock traded at ₹374.65 on the NSE at 12.14 pm, after hitting a high of ₹384.50, compared with the previous close of ₹349.85.

Business AUM rose 13 per cent to ₹1,37,449 crore, while disbursements reached a record first-quarter level.

Nomura maintained a buy call with a target price of ₹415, describing the quarter as a seasonally weak period with healthy asset-quality trends. It said Q1FY27 net profit was 25 per cent ahead of its estimate, while the slight deterioration in GS 2+3 of 14 basis points q-o-q indicated healthy trends.

HSBC upgraded the stock to buy and raised its target price to ₹410, citing stronger execution in fees, operating expenses and asset quality. The brokerage raised its FY27-29 EPS estimates by 33-37 per cent to reflect faster disbursement growth, stronger fees and lower expenses.

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Jefferies retained a hold call with a target price of ₹365. It said Q1 PAT rose 70 per cent y-o-y to ₹8.9 billion versus its estimate of ₹8.7 billion, driven by lower provisions. AUM grew 12.7 per cent y-o-y, while NIMs dipped q-o-q. The brokerage said asset quality was resilient and expects gradual improvement in AUM growth and range-bound NIMs.

Morgan Stanley retained an equal-weight recommendation and raised its target price to ₹370 from ₹335. It described Q1 as a good quarter, with PAT 7 per cent ahead of estimates, driven by lower operating and credit costs. The brokerage raised its FY27-29 EPS estimates by 8 per cent each, assuming lower operating and credit costs and slightly higher NIM.