M&M Financial Services jumps on foreign brokerage upgrade

Mahindra & Mahindra Financial Services rose 3% to Rs 272.90 at 14:14 IST on BSE on reports that a foreign brokerage has upgraded the stock to overweight.

Meanwhile, the S&P BSE Sensex was up 56.91 points or 0.22% at 26,447.87.

On BSE, so far 1.44 lakh shares were traded in the counter as against average daily volume of 2.52 lakh shares in the past one quarter.

The stock hit a high of Rs 275.70 and low of Rs 268.50 so far during the day. The stock had hit a record high of Rs 355.90 on 23 December 2013. The stock had hit a 52-week low of Rs 212.60 on 23 August 2013.

The stock had outperformed the market over the past one month till 18 August 2014, advancing 3.17% compared with Sensex's 2.92%. The scrip had, however, underperformed the market in past one quarter, gaining 2.81% as against Sensex's 9.41% rise.

The large-cap company has equity capital of Rs 113.75 crore. Face value per share is Rs 2.

According to the report, the foreign brokerage said that the worst is behind for M&M Financial Services (MMFSL). The brokerage said improved focus on collection and pick-up in growth at the parent level is positive for MMFSL.

MMFSL's consolidated net profit fell 16.5% to Rs 169.51 crore on 18.3% growth in total income to Rs 1384.37 crore in Q1 June 2014 over Q1 June 2013.

MMFSL, part of the Mahindra Group, is one of India's leading non-banking finance companies with a pan India presence. Focused on the rural and semi-urban sector, it provides finance for vehicles and tractors and has the largest network of branches amongst NBFC's operating in these areas.

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